Rivalry and Uncertainty in Complementary Investments with Dynamic Market Sharing

摘要: We study the combined effects of revenue and cost uncertainty as well competition on timing optimization investments in complementarity inputs for duopoly markets where either spillover-knowledge is allowed or proprietary-knowledge holds. For some input-sequencing investment scenarios, we find that ex-ante ex-post market shares play an important role firms behaviour. When about input costs are considered together with competition, conventional wisdom which says “when a production process requires two extremely complementary should upgrade (or replace) them simultaneously,” does not necessarily hold, particularly follower. Some illustrated results show nonlinear complex criteria both firms.