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v. 9 iss. 4 pp. 497-511
Pricing Stratefies in Supegames with Capacity Constraints: Some Evidence from the U.S. Portland Cement Industry
International Journal of Industrial Organization (1991)

 

Theory demonstrates that demand variations can have nonmonotonic effects on pricing in supergames with capacity constraints. Furthermore, this nonmonotonic relationship can be a function of capacity utilization rates. Time series data from 25 regional cement markets are used to examine this results empirically. No statistically significant relationship is found between demand variations, pricing and excess capacity.

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About the Researcher
David I. Rosenbaum
Interim Associate Dean, College of Business Administration
Professor of Economics Associate Director for Academic Affairs/Business Raikes School of Computer Science & Management

Department: Economics

Ph.D., University of Wisconsin--Madison
 



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