Business, Management and Accounting
8 years ago

Oligopoly Markets: How Capacity Expansion Impacts Industry Structures

The MIT Press eBooks
Oligopoly: Simultaneous Investment
Benoît Chevalier‐Roignant, Lenos Trigeorgis

Paper Summary

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The article explores how companies in certain markets decide to invest in new capacity at the same time. It looks at different scenarios: when companies add a lot of capacity at once, when they gradually increase capacity, and when there are many companies competing. The main findings show how these different situations can affect the overall market dynamics.