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Price versus production postponement: capacity and competition. (English) Zbl 1231.90067

Summary: We present 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.

MSC:

90B05 Inventory, storage, reservoirs
90B30 Production models
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