caa a22 4500 605475954 CHVBK 20210128100354.0 cr unu---uuuuu 210128e20150601xx s 000 0 eng 10.1007/s00199-014-0838-7 doi (NATIONALLICENCE)springer-10.1007/s00199-014-0838-7 Shi Fei Department of Economics, Shanghai Jiao Tong University, Fa Hua Zhen Road 535, 200052, Shanghai, People's Republic of China aut Long-run technology choice with endogenous local capacity [Elektronische Daten] [Fei Shi] We develop a two-stage, two-location model to investigate long-run technology choice with endogenous capacity constraints. Rational managers determine the maximum capacities (and mobility constraints). Then, boundedly rational agents play a coordination game with the possibility to migrate. We consider two alternative strategy sets and two different objective functions for the managers and show that they affect the long-run technology choice in a non-trivial way. If the managers only care about efficiency in their respective locations, either coexistence of conventions or global coordination on the risk-dominant equilibrium will be selected, depending on the (effective) capacities of both locations. If they are concerned with scale and can choose mobility constraints, global coordination on the risk-dominant equilibrium without mobility will be selected in the long run. We then change the basic interaction to a $$n\times n$$ n × n pure coordination game where mis-coordination results in zero payoff, and show that, regardless of the constraint choices, all the agents will coordinate on the most efficient equilibrium. Springer-Verlag Berlin Heidelberg, 2014 Location models nationallicence Long-run technology choice nationallicence Stochastic learning nationallicence Economic Theory Springer Berlin Heidelberg 59/2(2015-06-01), 377-399 0938-2259 59:2<377 2015 59 199 https://doi.org/10.1007/s00199-014-0838-7 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s00199-014-0838-7 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Shi Fei Department of Economics, Shanghai Jiao Tong University, Fa Hua Zhen Road 535, 200052, Shanghai, People's Republic of China aut NATIONALLICENCE 773 0- Economic Theory Springer Berlin Heidelberg 59/2(2015-06-01), 377-399 0938-2259 59:2<377 2015 59 199