Capacity Choice in the Mixed duopoly with Product Differentiation

Hikaru Ogawa

Economics Bulletin, 2006, vol. 12, issue 8, 1-6

Abstract: This note shows that when products are complements in the mixed duopoly market, both public and private firms choose excess capacity. This contrasts with substitute case, where public firm strategically chooses under-capacity while private firm keeps holding excess capacity.

Keywords: capacity; choice (search for similar items in EconPapers)
JEL-codes: L1 L2 (search for similar items in EconPapers)
Date: 2006-09-11
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Citations: View citations in EconPapers (15)

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