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In a two-stage oligopoly, with investment in the first stage and quantity or price competition in the second stage …, there is a kind of Folk Theorem: We find (i) over-investment if the goods are substitutes and competition is in strategic …. -- Oligopoly : technology choice ; efficiency ; under-investment ; overinvestment …
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Free-entry Cournot equilibria in pure strategies often fail to exist even within a framework of linear demand and constant marginal costs, if firms can choose from a discrete set of technologies. I show that the non-existence problem vanishes if vertical market size is large. An example...
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