New product introduction and capacity investment by incumbents: Effects of size on strategy ?
Incumbents on established market may add capacities for a new product. Capacity constrained oligopolistic price competition on interrelated markets. Non-monotone effects of established capacities on equilibrium profits. Smaller firm on the established market might outperform larger competitor. Symmetry breaking of identical firms depends on firm size on established market.
game theory innovation incentives capacity choice multi-product oligopoly subgame-perfect-equilibrium