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Mixed oligopoly and the choice of capacity

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  • Yuanzhu Lu

    (Department Of Economics, National University of Singapore (NUS))

  • Sougata Poddar

    (Department Of Economics, National University of Singapore (NUS))

Abstract

We analyze the capacity choice of firms under different time structures in a mixed oligopoly market, in which firms decide not only production quantities but also capacity scales. We show that the public firm never chooses excess capacity, while the private firm never chooses under capacity under all possible strategic environments.

Suggested Citation

  • Yuanzhu Lu & Sougata Poddar, 2004. "Mixed oligopoly and the choice of capacity," CEMA Working Papers 495, China Economics and Management Academy, Central University of Finance and Economics.
    • Handle: RePEc:cuf:wpaper:495
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    References listed on IDEAS

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    More about this item

    Keywords

    Public firm; Private firm; Excess capacity; Under capacity;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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