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| Tekijä: | Gabszewicz, J. J. Poddar, S. |
| Otsikko: | Demand fluctuations and capacity utilization under duopoly |
| Lehti: | Economic Theory
1997 : JUN, VOL. 10:1, P. 131-146 |
| Asiasana: | COMPANIES CAPACITY UTILIZATION DEMAND DUOPOLY |
| Kieli: | eng |
| Tiivistelmä: | This article studies the impact of uncertain demand on firms' capacity decisions when they operate in an oligopolistic environment. The effect of uncertain demand fluctuations on expected profits, expected price and capacity in competitive or monopolistic industries has been extensively analyzed. Firms must adjust their capacity in view of meeting output demand levels varying across the states of nature, and also for providing best output replies against the capacity and output strategies chosen by rival firms. The model assumes that total demand varies linearly with output in each state of nature, with a random intercept over the states. |
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