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Flexibility And Competition In U.S. Food Manufacturing Firms: Are Firms Too Inflexible?

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  • Weiss, Christoph R.

Abstract

We analyse the flexibility decision of firms in a two-stage duopoly game of complete information and test the models implications using panel data of U.S. food industries. We find a positive relationship between flexibility and market power. Flexibility in food manufacturing industries is significantly higher than in all other industries.

Suggested Citation

  • Weiss, Christoph R., 2001. "Flexibility And Competition In U.S. Food Manufacturing Firms: Are Firms Too Inflexible?," 2001 Annual meeting, August 5-8, Chicago, IL 20596, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea01:20596
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    File URL: http://purl.umn.edu/20596
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    References listed on IDEAS

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    1. Norman, George & Thisse, Jacques-Francois, 1999. "Technology Choice and Market Structure: Strategic Aspects of Flexible Manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 47(3), pages 345-372, September.
    2. Vives, Xavier, 1986. "Commitment, flexibility and market outcomes," International Journal of Industrial Organization, Elsevier, vol. 4(2), pages 217-229, June.
    3. Roller, Lars-Hendrik & Tombak, Mihkel M, 1990. "Strategic Choice of Flexible Production Technologies and Welfare Implications," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 417-431, June.
    4. Roeger, Werner, 1995. "Can Imperfect Competition Explain the Difference between Primal and Dual Productivity Measures? Estimates for U.S. Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 316-330, April.
    5. Weiss, Christoph R., 2001. "On flexibility," Journal of Economic Behavior & Organization, Elsevier, vol. 46(3), pages 347-356, November.
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    Keywords

    Agribusiness;

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