Pricing strategies in supergames with capacity constraints. Some evidence from the U.S. portland cement industry

Thomas Iwand, David I Rosenbaum

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)497-511
Number of pages15
JournalInternational Journal of Industrial Organization
Volume9
Issue number4
DOIs
StatePublished - Dec 1991

Fingerprint

Cement industry
Portland cement
Costs
Time series
Cements
Capacity constraints
Supergame
Pricing strategy
Pricing
Capacity utilization
Cement
Utilization rate
Excess capacity
Time series data

ASJC Scopus subject areas

  • Industrial relations
  • Aerospace Engineering
  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

Cite this

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