Barham, Brad; Ware, Roger - In: Canadian Journal of Economics 26 (1993) 2, pp. 286-98
A model of sequential entry with Leontief costs is studied in which demand is isoelastic. Some or all firms may hold excess capacity in the perfect equilibrium to the entry game. Firms with a first-mover advantage trade off the positioning value of a large investment in capacity, leading to a...