BIROn - Birkbeck Institutional Research Online

    Firms' strategic choices under demand uncertainty

    Beckert, Walter (2002) Firms' strategic choices under demand uncertainty. Working Paper. Birkbeck, University of London, London, UK.

    Full text not available from this repository.

    Abstract

    This paper investigates how firms choose prices and production capacity when facing stochastic demand. With demand uncertainty, firms face demand curves for their goods which implicitly subsume the selling mechanism adopted in the markets for these goods. The selling mechanisms considered in this analysis are bidding markets or auctions, and take-it-or-leave-it sales. They have different implications for the respective expected demand curves the firms face, and hence for the firms' capacity choices. These implications entail consequences for welfare. It is shown that auctions yield higher expected comsumer welfare than take-it-orleave-it sales when production costs are high, while take-it-or-leave-it sales enhance welfare when production costs are low

    Metadata

    Item Type: Monograph (Working Paper)
    School: School of Business, Economics & Informatics > Computer Science and Information Systems
    Depositing User: Sarah Hall
    Date Deposited: 02 Jun 2020 08:46
    Last Modified: 02 Jun 2020 08:47
    URI: https://eprints.bbk.ac.uk/id/eprint/32103

    Statistics

    Downloads
    Activity Overview
    0Downloads
    0Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item