The article explores how a salvage market affects firms' technology and capacity decisions when competing in uncertain demand. Firms choose between flexible and inflexible production processes, then decide on capacity investment. They compete in the market and can sell unsold components in a salvage market. The study finds that with symmetric parameters, both firms choose inflexible technology, but with asymmetric parameters, one firm may choose flexible technology. A specific cost threshold can shift the game's equilibrium, and sometimes there may be no equilibrium.