Competition for finite resources

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Competition for Scarce Resources∗

We show that the efficient allocation of production capacity can turn a competitive industry and downstream market into an imperfectly competitive one. Even though downstream firms have symmetric production technologies, the downstream industry structure will be symmetric only if capacity is sufficiently scarce. Otherwise it will be asymmetric, with one large “fat” capacity-hoarding firm and a ...

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Competition for Scarce Resources

We show that the efficient allocation of production capacity can turn a competitive industry and downstream market into an imperfectly competitive one. Even though downstream firms have symmetric production technologies, the downstream industry structure will be symmetric only if capacity is sufficiently scarce. Otherwise it will be asymmetric, with one large “fat” capacityhoarding firm and a f...

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ژورنال

عنوان ژورنال: Journal of Statistical Mechanics: Theory and Experiment

سال: 2012

ISSN: 1742-5468

DOI: 10.1088/1742-5468/2012/05/p05008