This paper studies capacity collaboration between two (potentially competing) firms. We explore the ways that the firms can collaborate by either building capacity together or sharing the existing capacity for production. We consider cases where the two firms' products are potential substitutes...

We study a firm's optimal strategy to adjust its capacity using demand information. The capacity adjustment is costly and often subject to managerial hurdles which sometimes make it difficult to adjust capacity multiple times. In order to clearly analyze the impact of demand learning on the...