The incentive to 'overinvest' in capital may be eroded in dynamic, competitive settings if firms face uncertainty and irreversibility. In this paper, we derive the stationary Markov perfect equilibrium for a dynamic, infinite-horizon capacity investment game formulated in continuous time in...

We study a supply chain distribution system (comprising a supplier and multiple retailers) and investigate experimentally how the trading by retailers of digital claims (tokens) on the supplier's capacity affects supply-demand mismatches. Creating markets for such tokens relies on advances in...