When production takes place before firms allocate output to different markets, the equilibrium may be different from the one corresponding to simultaneous production and allocation decisions. The difference arises when firms account for the output-shifting effect their own production levels have on the allocation decisions of rivals. We determine conditions under which the two equilibria are different and indicate the direction of change from the simultaneous equilibrium. Applying the model to reciprocal dumping (à la Brander-Krugman), the condition reduces to the concavity or convexity of demand.