Publication
Title
Investment in oligopoly under uncertainty: the accordion effect
Author
Abstract
This paper studies investments in new markets where more than two (anticipated) identical competitors are present. In case of three firms an accordion effect is detected: an exogenous demand shock results in a change of the wedge between investment thresholds of the first and second investor that is qualitatively different from the change of the wedge between the second and third investment threshold. Furthermore, it turns out that in the three-firm case the investment timing of the first investor lies in between the one and the two-firm case. These results are numerically extended to the n-firm case.
Language
English
Source (journal)
International journal of industrial organization. - Amsterdam
Publication
Amsterdam : 2009
ISSN
0167-7187
Volume/pages
27:2(2009), p. 320-331
ISI
000264002900019
Full text (Publishers DOI)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 12.05.2009
Last edited 17.05.2017
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