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Economics of Strategy
Besanko, Dranove, Shanley and Schaefer, 4th Edition
Chapter 7
Strategic Commitment
Slide show prepared by
Richard Ponarul
California State University, Chico
Strategic Commitment
Strategic commitments are decisions that
have long run impact and are hard to reverse
(Example: Installation of additional
production capacity)
These differ from tactical moves which are
easy to reverse and have only a short run
impact (Exam
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