Mollgaard, H.P.; Poddar, S.; Sasaki, D. - Business School, University of Exeter - 2000
A general model of two-period duopoly is set up to show how inventories can serve a strategic purpose, enabling the firm to commit to raise its latter-period output. The strategic effect of inventories depends on the convexity of the cost function, on the cost of storage, and on the slopes of...