Shared manufacturing in a differentiated duopoly with capacity constraints

This study proposes a differentiated duopoly model considering capacity constraints and shared manufacturing, investigates the effects of product differentiation in three scenarios, compares equilibrium outcomes cases under Cournot Stackelberg competitions. We find that affect relationships between results, even market share enterprises. Shared manufacturing impacts degree excess capacity, profits, consumer surplus, social welfare. However, may sometimes play negative role alleviating capacity. Moreover, competition is better choice for enterprises with than competition.