Entry,capacity, investment and oligopolistic pricing: A model of the U.S. fiberglass insulation industry |
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| Authors: | Noel D Uri |
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| Institution: | Department of Energy, Office of Energy Source Analysis, Oil and Gas Analysis Division, Washington, DC 20461, U.S.A. |
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| Abstract: | In this paper, a model is developed that suggests that entry into an industry selling a relatively homogeneous product can be deterred by investment decisions. The model characteristics are related to the institutional structure of the fiberglass insulation industry in the United States with the conclusion that the behavior of the industry closely emulates that behavior predicted by the analysis. |
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