%0 Journal Article %T Capacity and Reaction Functions of Joint-Stock Firms %J International Journal of Management, Accounting and Economics %I Mashhad: Behzad Hassannezhad Kashani %Z 2383-2126 %A Ohnishi, Kazuhiro %D 2016 %\ 03/01/2016 %V 3 %N 3 %P 166-173 %! Capacity and Reaction Functions of Joint-Stock Firms %K Capacity %K Joint-stock firm %K Reaction function %K entry %R %X This paper investigates two-stage competition with two joint-stock firms. In the first stage, each firm independently chooses a level of capacity. In the second stage, each firm independently chooses an output. The paper shows that each firm’s reaction function has a kink at its installed capacity level. In addition, the paper considers interactions between a joint-stock incumbent and a potential joint-stock entrant as well as a pair of established joint-stock firms. The paper demonstrates that there exist cases in which the joint-stock incumbent can deter entry by the potential joint-stock entrant. %U https://www.ijmae.com/article_115238_77a433a6213da9f65934ed014943fc6f.pdf