standard financial claims (debt, equity, etc.). We find that when higher demand realizations are more indicative of high effort … demand elicitation effect. Both stem from the risk of unmet demand, which is characteristic of capacity decisions under …

We analyze a two-stage game of strategic firms facing uncertain demand and exerting market power in decentralized … consider various types of such a closed loop model regarding the underlying price-demand relations (elastic and inelastic … demand), the assumed demand uncertainty with a broad class of continuous distributions, and any finite number of players with …