Price versus production postponement: capacity and competition

Jan A. Van Mieghem, Maqbool Dada

Research output: Contribution to journalArticlepeer-review

Abstract

Presented is a comparative analysis of possible postponement strategies in a two-stage decision model where firms make three decision: capacity investment, production (inventory) quantity, and price. It is shown how competition, uncertainty, and the timing of operational decisions influence the strategic investment decision of the firm and its value.

Original languageEnglish (US)
Pages (from-to)1631-1649
Number of pages19
JournalManagement Science
Volume45
Issue number12
DOIs
StatePublished - Dec 1999
Externally publishedYes

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research

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