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Endogenous Flexibility In The Flexible Manufacturing System

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  • Toshihiro Matsumura
  • Daisuke Shimizu

Abstract

type="main"> We investigate the flexible manufacturing system (FMS) by using the spatial price discrimination framework of Pal. The degree of flexibility when producing variants can be increased by increasing the investment or production cost and is endogenously determined. Our result is that private incentives for increasing flexibility are excessive from a social welfare perspective.

Suggested Citation

  • Toshihiro Matsumura & Daisuke Shimizu, 2015. "Endogenous Flexibility In The Flexible Manufacturing System," Bulletin of Economic Research, Wiley Blackwell, vol. 67(1), pages 1-13, January.
  • Handle: RePEc:bla:buecrs:v:67:y:2015:i:1:p:1-13
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    File URL: http://hdl.handle.net/10.1111/j.1467-8586.2012.00458.x
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    3. Nuowen Bai & Toshihiro Matsumura, 2023. "Common ownership in a delivered pricing duopoly," Journal of Economics, Springer, vol. 139(3), pages 191-208, August.

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