Many industries experience periods of excess capacity. Explanations include firms deterring rivals, anticipating future demand, or the lumpiness of investment. This paper identifies capacity investment intended to deter rivals separately from investment driven by other factors. To achieve this...

This article examines whether the player draft used since 1986 in the Australian Football League has caused clubs to tank; that is, to seek to lose matches to obtain improved draft choices. A comparison of clubs’ performances in regular season matches played before and after introduction of...