Consider the market for high-definition televisions, which can be expected to grow in popularity over time as

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Consider the market for high-definition televisions, which can be expected to grow in popularity over time as consumers become familiar with it and more programs are developed for it. If there is a first-mover advantage in building capacity, what determines which firm will move first? If firms race to preempt each other to be the first mover, is there some profit-maximizing condition that would determine how long before the anticipated peak in demand firms would start building capacity?
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Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

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