Do Firms Always Choose Excess Capacity?
We analyze the capacity choice of firms in a long-run mixed oligopoly market, in which firms decide not only production quantity but also capacity scale. Our main purpose is to show that while a profit-maximizing firm maintains over capacity as a strategic device, a firm pursuing non-pure profit chooses under capacity.
Volume (Year): 12 (2004)
Issue (Month): 2 ()
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References listed on IDEAS
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