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- Title
Investment sequencing in the brick industry: an application of grounded theory.
- Authors
Scheibl, Fiona; Wood, Andrew
- Abstract
Since the work of George Richardson on the problem of investment coordination, the literature has focused on explaining equilibrium in investment games and neglected the problem of how investments are coordinated. This paper reports the findings of a case study of the brick industry which used grounded theory techniques to develop a new analysis of investment co- ordination. Our main findings indicate that, despite the high cost of excess capacity and the very clear signalling of investment intentions, brick firms are reluctant to stand back and delay their own investments when a rival firm is expanding. The fact that for the most part excess investment is avoided is explained by reference to firms' heterogeneity and constraints to investment.
- Subjects
ECONOMICS; INVESTMENTS; RICHARDSON, George; AMUSEMENTS; SOCIAL science methodology; CLERGY
- Publication
Cambridge Journal of Economics, 2005, Vol 29, Issue 2, p223
- ISSN
0309-166X
- Publication type
Article
- DOI
10.1093/cje/bei028