Capacity Investment Under Postponement Strategies, Market Competition, and Demand Uncertainty

@article{Anupindi2008CapacityIU,
  title={Capacity Investment Under Postponement Strategies, Market Competition, and Demand Uncertainty},
  author={Ravi Anupindi and Li Jiang},
  journal={Management Science},
  year={2008},
  volume={54},
  pages={1876-1890}
}
We provide a comprehensive analysis of capacity investment decisions in duopoly models with demand uncertainty. Firms make capacity investment, production, delivery and pricing decisions. Capacity investment decisions are always made ex-ante demand whereas price decisions always ex-post. The interplay between the timing of demand information and the decision of production and delivery endows firms with different capabilities. Flexible firms can postpone both production and delivery decisions to… CONTINUE READING
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