We show that whether observing technological choices made by the competitors is possible or not has significant impact on the equilibrium technological configurations. Depending upon the industry characteristics, the strategic value of technological flexibility may be either positive or negative, and it is sometimes better to observe than to be observed and sometimes to be observed than observe.
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Paper provided by Toulouse - GREMAQ in its series Papers with number
98.504.
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
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