The strategic effects of batch processing.
We study a duopoly game in which firms commit to a batch technology before competing in sales quantities. Adopting a batch technology requires the quantity produced to equal an integer number of batches and allows sales to be less than production. When larger batch sizes lower unit production cost...
| Published in: | International Economic Review Vol. 42; no. 3; pp. 697 - 729 |
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| Main Authors: | , |
| Format: | Article |
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Wiley-Blackwell
August 2001
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=513050614&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 513050614 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00206598 IER jtl: International Economic Review issn: 00206598 maglogo: N pubinfo: dt: August 2001 vid: 42 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 513050614 10.1111/1468-2354.00130 ppf: 697 ppct: 32 formats: tig: atl: The strategic effects of batch processing. aug: au: Gresik, Thomas A. Mansley, Edward C. su: Duopolies Economic lot size Economics Game theory sug: subj: Duopolies Economic lot size Economics Game theory keyword: Manufacturing processes -- Mathematical models ab: We study a duopoly game in which firms commit to a batch technology before competing in sales quantities. Adopting a batch technology requires the quantity produced to equal an integer number of batches and allows sales to be less than production. When larger batch sizes lower unit production costs (as in the U.S. airline industry with its economies of density), subgame perfect equilibrium sales quantities are unique and more competitive than the Cournot equilibrium quantities of a one-shot game with continuous total cost functions. When larger batch sizes yield higher unit costs, equilibrium production can exceed equilibrium sales. Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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