This paper analyzes a T-stage model of oligopoly where firms build up capacity and conclude forward sales in stages tT, and they choose production quantities in t=T. We consider the case of n firms with asymmetric marginal costs. In the two-stage game, the set of outcomes is a...

This paper studies the strategic role of foreign direct investment (FDI) in a framework with early-on capacity investments by a multinational enterprise (MNE) and relevant fixed costs. A three-stage game is considered : (i) MNE chooses internationalisation mode, and output to precommit by...