The authors propose to endogenize industrial diversity by beginning with the product, defined in terms of its qualities for the user: specialized, standardized, dedicated, generic. For each type of product, there is a coherent possible combination of product dualities, production technologies and markets. These coherent combinations can only come about when coherent mutual expectations--conventions--are formed between actors in the production system in terms of resource qualities, quantities, and their economic equivalents. The theoretical problem of diversity is redefined as one of collective action: the coherence of conventions of groups of actors helps explain what they do in market economies and how they do it. Copyright 1992 by Oxford University Press.
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