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The Role of Capacity Building on Technology Adoption under Imperfect Competition

Author

Listed:
  • FAGART, Thomas
  • VARDAR, N. Baris

    (Université catholique de Louvain, CORE, Belgium)

Abstract

This work studies the investment choice of firms in a two-period model when there are two different productive capacities that embody two different types of technology. One of them is more ender duopoly competition, there exists a symmetric equilibrium and two asymmetric equilibria with preemption, in which one of the firms overinvests in the ine

Suggested Citation

  • FAGART, Thomas & VARDAR, N. Baris, 2016. "The Role of Capacity Building on Technology Adoption under Imperfect Competition," LIDAM Discussion Papers CORE 2016011, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2016011
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2016.html
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    More about this item

    Keywords

    capacity choice; technology adoption; financial constraint; market structure; symmetric and asymmetric equilibria;
    All these keywords.

    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
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing

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