Price Versus Production Postponement: Capacity and Competition
نویسندگان
چکیده
منابع مشابه
Price Versus Production Postponement: Capacity and Competition
This article presents a comparative analysis of possible postponement strategies in a two-stage decision model where firms make three decisions: capacity investment, production (inventory) quantity, and price. Typically, investments are made while the demand curve is uncertain. The strategies differ in the timing of the operational decisions relative to the realization of uncertainty. We show h...
متن کاملAppendix with Explicit Results to: Price vs. Production Postponement: Capacity and Competition
Here we Þrst summarize the explicit solutions to our pricing-capacity and quantity-capacity models for both the monopoly and duopoly when uncertainty is uniformly distributed. Then follow the proofs and other technical extensions. (For clarity, we use the subscript M for monopoly and D for duopoly, as needed.) The main paper appeared in Management Science Vol. 45, No. 12, December 1999 pp. 1631...
متن کاملDeveloping Competitive Price and Production Postponement Strategies
Yohanes Kristianto PhD student, University of Vaasa [email protected]/ This paper focuses on duopolistic competition under price and production postponement for two differentiable products that share component commonality. Both price and production postponement are benchmarked in order to investigate the component commonality effect on profit and also their appropriateness in different competitio...
متن کاملPrice and capacity competition
We study the efficiency of oligopoly equilibria in a model where firms compete over capacities and prices. Our model economy corresponds to a two-stage game. First, firms choose their capacity levels. Second, after the capacity levels are observed, they set prices. Given the capacities and prices, consumers allocate their demands across the firms. We establish the existence of pure strategy oli...
متن کاملImpact of Price Postponement on Capacity and Flexibility Investment Decisions
Investments in dedicated and flexible capacity have traditionally been based on demand forecasts obtained under the assumption of a predetermined product price. However, the impact on revenue of poor capacity and flexibility decisions can be mitigated by appropriately changing prices. While investment decisions need to be made years before demand is realized, pricing decisions can easily be pos...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 1999
ISSN: 1556-5068
DOI: 10.2139/ssrn.2790932