TY - JOUR ID - 115238 TI - Capacity and Reaction Functions of Joint-Stock Firms JO - International Journal of Management, Accounting and Economics JA - IJMAE LA - en SN - AU - Ohnishi, Kazuhiro AD - Institute for Basic Economic Science, Osaka, Japan Y1 - 2016 PY - 2016 VL - 3 IS - 3 SP - 166 EP - 173 KW - Capacity KW - Joint-stock firm KW - Reaction function KW - entry DO - N2 - This paper investigates two-stage competition with two joint-stock firms. In the first stage, each firm independently chooses a level of capacity. In the second stage, each firm independently chooses an output. The paper shows that each firm’s reaction function has a kink at its installed capacity level. In addition, the paper considers interactions between a joint-stock incumbent and a potential joint-stock entrant as well as a pair of established joint-stock firms. The paper demonstrates that there exist cases in which the joint-stock incumbent can deter entry by the potential joint-stock entrant. UR - https://www.ijmae.com/article_115238.html L1 - https://www.ijmae.com/article_115238_77a433a6213da9f65934ed014943fc6f.pdf ER -