Article ID Journal Published Year Pages File Type
1142651 Operations Research Letters 2013 4 Pages PDF
Abstract

We study a two-period duopoly game with capacity accumulation under demand uncertainty, production and time-to-build constraints. These considerations are relevant in network industries such as electricity markets and hot spot markets. We characterize and compare open-loop, Markov perfect and closed-loop Nash equilibrium investments.

Keywords
Related Topics
Physical Sciences and Engineering Mathematics Discrete Mathematics and Combinatorics
Preview
Capacity investments in a stochastic dynamic game: Equilibrium characterization
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