This paper examines the impact of pre‐emptive competition for a leader's position on the investment strategies for market entry, production capacities, and product differentiation. In the absence of pre‐emptive competition, the leader's production capacity exceeds the follower's, and the...

This paper examines the effects of uncertainty, tacit collusion and product differentiation on strategic investment policy. The model demonstrates the equilibrium under competitive investments and under cooperative investments. In competitive investments, two firms compete by investing to...