Corvinus
Corvinus

Production in advance versus production to order

Tasnádi, Attila (2004) Production in advance versus production to order. Journal of Economic Behavior and Organization, 54 (2). pp. 191-204.

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Official URL: http://linkinghub.elsevier.com/retrieve/pii/S0167268103002221


Abstract

We use a theoretical framework to compare production-in-advance type and production-to-order type environments. Carrying out our analysis in the framework of a symmetric capacity-constrained Bertrand-Edgeworth duopoly game, we prove that the equilibrium prots are the same in case of production in advance and production to order. In addition, advance production results in higher prices than production to order if both games have an equilibrium in nondegenerated mixed strategies.

Item Type:Article
Series Number / Identification Number:10.1016/j.jebo.2003.04.005
Uncontrolled Keywords:Price-quantity games, Bertrand-Edgeworth competition.
Subjects:Mathematics, Econometrics
ID Code:214
Deposited By: Ádám Hoffmann
Deposited On:01 Feb 2011 14:33
Last Modified:03 Jul 2012 00:24

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