Firm capacity of PV+STG systems

Capacity Dynamics and Endogenous Asymmetries in Firm

Asymmetries arise and persist provided that one firm has a strategic advantage over the other. The tangible form of this advantage is that one firm can get the other to stop investing. In Section 4 of the paper, we have shown that this is the case under price competition because a firm’s profits from product market competition peak in its own capacity. Below we show that cost/benefit considerat...

The ( normal ) rate of capacity utilization at the firm level

This paper examines the endogeneity (or lack thereof) of the rate of capacity utilization in the long run at the firm level. We provide economic justification for the adjustment of the desired rate of utilization toward the actual rate on behalf of a cost-minimizing firm after examining the factors that determine the utilization of resources. The cost-minimizing firm has an incentive to increas...

The Effect Of Salvage Market On Strategic Technology Choice And Capacity Investment Decision Of Firm Under Demand Uncertainty

Capacity Dynamics and Endogenous Asymmetries in Firm Size∗

Empirical evidence suggests that there are substantial and persistent differences in the sizes of firms in most industries. We propose a dynamic model of capacity accumulation that explains the observed facts. In our model, firms accumulate capacity over time and compete repeatedly in the product market. We assume that capacity is lumpy and that investment and depreciation are subject to idiosy...

Capacity dynamics and endogenous asymmetries in firm size