Traditional economic theory posits that a well functioning capital market is a necessary condition for industrialization and economic growth. However, in reality it is observed that micro and small enterprises are ubiquitous because entrepreneurs can set up business in low-return activities with...

Traditional economic theory posits that a well functioning capital market is a necessary condition for industrialization and economic growth. However, in reality it is observed that micro and small enterprises are ubiquitous because entrepreneurs can set up business in low-return activities with...

We consider capacity management with a long-term strategic choice, such as the number of production lines to install before demand is known, and short-time tactical decisions relating to production, inventory and subcontracting (recourse actions made after demand is known).[...]