{"title":"Capacity coordination in a duopoly with perfect cournot complements","authors":"Bertrand Crettez, Naila Hayek, Guiomar Martín-Herrán","doi":"10.1007/s10479-025-06778-3","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>We study capacity coordination in a dynamic duopoly with perfect Cournot complements where firms face investment adjustment costs when choosing their production capacities. We show that optimal capacities must become identical from a certain date on. We perform a numerical analysis of the optimal investment and capital paths and the optimal date at which capacities become equal. We find that eliminating overcapacity does not always mean decreasing the highest initial capacity (this is especially true when the firm with the lowest initial capacity has the highest depreciation rate). Moreover, it is possible that the investment of the firm with the lowest initial capacity is non-monotonic.</p>\n </div>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":"352 1-2","pages":"75 - 103"},"PeriodicalIF":4.5000,"publicationDate":"2025-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Annals of Operations Research","FirstCategoryId":"91","ListUrlMain":"https://link.springer.com/article/10.1007/s10479-025-06778-3","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"OPERATIONS RESEARCH & MANAGEMENT SCIENCE","Score":null,"Total":0}
引用次数: 0
Abstract
We study capacity coordination in a dynamic duopoly with perfect Cournot complements where firms face investment adjustment costs when choosing their production capacities. We show that optimal capacities must become identical from a certain date on. We perform a numerical analysis of the optimal investment and capital paths and the optimal date at which capacities become equal. We find that eliminating overcapacity does not always mean decreasing the highest initial capacity (this is especially true when the firm with the lowest initial capacity has the highest depreciation rate). Moreover, it is possible that the investment of the firm with the lowest initial capacity is non-monotonic.
期刊介绍:
The Annals of Operations Research publishes peer-reviewed original articles dealing with key aspects of operations research, including theory, practice, and computation. The journal publishes full-length research articles, short notes, expositions and surveys, reports on computational studies, and case studies that present new and innovative practical applications.
In addition to regular issues, the journal publishes periodic special volumes that focus on defined fields of operations research, ranging from the highly theoretical to the algorithmic and the applied. These volumes have one or more Guest Editors who are responsible for collecting the papers and overseeing the refereeing process.