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Hikaru Ogawa and Akira Nishimori
''Do Firms Always Choose Excess Capacity?''
( 2004, Vol. 12 No.2 )
We analyze the capacity choice of firms in a long-run mixed oligopoly market, in which firms decide not only production quantity but also capacity scale. Our main purpose is to show that while a profit-maximizing firm maintains over capacity as a strategic device, a firm pursuing non-pure profit chooses under capacity.
JEL: L3 - Nonprofit Organizations and Public Enterprise: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : Jan 14 2004 Manuscript Accepted : Jan 15 2004

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