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- W2085426585 abstract "We analyze endogenous capacity formation in a large frictional market with perfectly divisible goods. Each seller posts a price and decides on a capacity. The buyers base their decision on which seller to visit on both characteristics. In this setting we determine the conditions for the existence and uniqueness of a symmetric equilibrium. When capacity is unobservable there exists a continuum of equilibria. We show that the best of these equilibria leads to the same seller capacities and the same number of trades as the symmetric equilibrium under observable capacity." @default.
- W2085426585 created "2016-06-24" @default.
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- W2085426585 date "2014-08-18" @default.
- W2085426585 modified "2023-09-25" @default.
- W2085426585 title "Capacity Choice in a Large Market" @default.
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- W2085426585 doi "https://doi.org/10.1371/journal.pone.0101766" @default.
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