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Ting (2009) - Organizational Capacity (view source)
Revision as of 18:15, 22 May 2010
, 18:15, 22 May 2010→Specialized Capacity (SC)
<math>A\,</math> doesn't want policy to move beyond <math>x_A\,</math>. In addition, <math>A\,</math> prefers policies closer to <math>x^A\,</math> than <math>x^P\,</math> and can prevent <math>P\,</math> from choosing <math>x^P\,</math> by investing in some <math>y \,</math> closer to <math>x^A\,</math>. Therefore, the equilibrium is:
:<math>x_1^* = x_2^* = y^* \mbox{ and } y^* \in \left ( x^P, x^A \right]\,</math>
:<math>y^* \in [y_c,x^A]\,</math>
===Comparing GC and SC===
