IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v49y2003i9p1264-1267.html
   My bibliography  Save this article

Remark on ÜAppropriateness and Impact of Platform-Based Product DevelopmentÝ

Author

Listed:
  • James D. Dana

    () (Department of Management and Strategy, Kellogg School of Management, Northwestern University, Evanston, Illinois 60208-2028)

Abstract

When platform-based manufacturing exhibits overdesign costs then platform adoption will lead to a decrease in product line differentiation. In contrast, Krishnan and Gupta (2001) argued that in the presence of overdesign costs and platform economies, platform production always leads to a more differentiated product family. While Krishnan and Gupta analyzed one particular parameterized cost function and define overdesign costs and platform economies narrowly in terms of their parameters, I propose a general definition of overdesign costs and show that platform adoption reduces product differentiation for all cost functions satisfying this definition, regardless of whether or not they exhibit platform economies.

Suggested Citation

  • James D. Dana, 2003. "Remark on ÜAppropriateness and Impact of Platform-Based Product DevelopmentÝ," Management Science, INFORMS, vol. 49(9), pages 1264-1267, September.
  • Handle: RePEc:inm:ormnsc:v:49:y:2003:i:9:p:1264-1267
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.49.9.1264.16572
    Download Restriction: no

    References listed on IDEAS

    as
    1. V. Krishnan & Saurabh Gupta, 2001. "Appropriateness and Impact of Platform-Based Product Development," Management Science, INFORMS, vol. 47(1), pages 52-68, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sanjiv Erat & Stylianos Kavadias & Cheryl Gaimon, 2013. "The Pitfalls of Subsystem Integration: When Less Is More," Management Science, INFORMS, vol. 59(3), pages 659-676, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:49:y:2003:i:9:p:1264-1267. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.