The timing of capacity expansions as barriers to mobility in the United Kingdom’s petroleum refining industry between 1948 and 1998
AbstractWe try to determine whether capacity expansion timing in oligopoly among incumbents can be considered mobility deterring. We study the United Kingdom ´s petroleum refining industry between 1948 and 1998. Using tobit models, evidence is conclusive about accommodation among incumbents. We infer that excess capacity in this industry, instead of being a tool for strategic deterrence, has been the result of unexpected demand variability.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32231.
Date of creation: 14 Dec 2004
Date of revision:
Capacity expansion timing; Mobility deterrence;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
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