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Better Observability Promotes the Adoption of More Flexible Technologies

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Author Info
Marcel Boyer ()
Armel Jacques
Michel Moreaux ()

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Abstract

We study in this paper how the technological flexibility choices and equilibrium configurations depend first on the industry characteristics (demand function and cost parameters specific to the multiproduct flexible technology and to the product dedicated technologies) and, second, on the observability conditions prevailing in the industry. We show that better observability tends to promote the adoption of more flexible technologies.

On étudie dans cet article comment les choix technologiques et les configurations techniques d'équilibre dépendent premièrement des caractéristiques de l'industrie (fonctions de demande et paramètres de coûts spécifiques de la technique multiproduit flexible et de la technique de production, non flexible, de chaque bien), ainsi que des conditions d'observation des choix des concurrents. On montre qu'une meilleure observabilité des choix favorise l'émergence de technologies plus flexibles.

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Publisher Info
Paper provided by CIRANO in its series CIRANO Working Papers with number 98s-38.

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Date of creation: 01 Nov 1998
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Handle: RePEc:cir:cirwor:98s-38

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Related research
Keywords: Flexible manufacturing technology; commitment; strategic equilibrium; Technologie flexible; engagement; équilibre stratégique;

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Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. W. Bentley MacLeod & Daniel Parent, 1999. "Job characteristics, wages, and the employment contract," Review, Federal Reserve Bank of St. Louis, issue May, pages 13-27. [Downloadable!]
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  2. Eaton, B Curtis & Schmitt, Nicolas, 1994. "Flexible Manufacturing and Market Structure," American Economic Review, American Economic Association, vol. 84(4), pages 875-88, September. [Downloadable!] (restricted)
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  3. Vives, Xavier, 1989. "Technological competition, uncertainty, and oligopoly," Journal of Economic Theory, Elsevier, vol. 48(2), pages 386-415, August. [Downloadable!] (restricted)
  4. Boyer, M. & Jacques, A. & Moreaux, M., 1998. "Observability, Commitment and Flexibility," Papers 98.504, Toulouse - GREMAQ.
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  5. Boyer, Marcel & Moreaux, Michel, 1996. "Capacity Commitment versus Flexibility," IDEI Working Papers 63, Institut d'Économie Industrielle (IDEI), Toulouse.
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  1. Marcel Boyer & Armel Jacques & Michel Moreaux, 1998. "Observability, Commitment and Flexibility," CIRANO Working Papers 98s-36, CIRANO. [Downloadable!]
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