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Strategic Advance Production Without Stackelberg Leadership

Author

Listed:
  • Poddar, S.
  • Sasaki, D.

Abstract

Advance production served as a means of quantity commitment. This paper shows that the pre-emption acts as strategic substitutes between oligopolists. We also show that a firm's incentive for advance production arises only if it has a quantity-setting opponent, irrespective of the firm's own strategic variable (i.e., price or quantity) and the characteristics of the concered products (i.e. substitutes or complements).

Suggested Citation

  • Poddar, S. & Sasaki, D., 1998. "Strategic Advance Production Without Stackelberg Leadership," Department of Economics - Working Papers Series 667, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:667
    as

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    More about this item

    Keywords

    PRODUCTION CONTROL ; INVENTORIES ; STOCKS;
    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
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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