IDEAS home Printed from https://ideas.repec.org/p/cir/cirwor/98s-36.html
   My bibliography  Save this paper

Observability, Commitment and Flexibility

Author

Listed:
  • Marcel Boyer
  • Armel Jacques
  • Michel Moreaux

Abstract

We show that whether observing technological choices made by competitors is possible or not has significant impacts 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 to observe Nous montrons que la possibilité qu'ont, ou non, les entreprises d'observer leurs choix technologiques respectifs a des impacts significatifs sur les technologies qu'elles adopteront à l'équilibre. Selon les caractéristiques de l'industrie, la valeur stratégique de la flexibilité technologique peut être positive ou négative, et il est parfois préférable d'observer plutôt que d'être observé, parfois plus profitable d'être observé que d'observer.

Suggested Citation

  • Marcel Boyer & Armel Jacques & Michel Moreaux, 1998. "Observability, Commitment and Flexibility," CIRANO Working Papers 98s-36, CIRANO.
  • Handle: RePEc:cir:cirwor:98s-36
    as

    Download full text from publisher

    File URL: http://www.cirano.qc.ca/files/publications/98s-36.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marcel Boyer & Armel Jacques & Michel Moreaux, 1998. "Better Observability Promotes the Adoption of More Flexible Technologies," CIRANO Working Papers 98s-38, CIRANO.
    2. Marcel Boyer & Michel Moreaux, 1997. "Capacity Commitment versus Flexibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(1), pages 347-376, June.
    3. Vives, Xavier, 1989. "Technological competition, uncertainty, and oligopoly," Journal of Economic Theory, Elsevier, vol. 48(2), pages 386-415, August.
    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. Marcel Boyer & Armel Jacques & Michel Moreaux, 1998. "Better Observability Promotes the Adoption of More Flexible Technologies," CIRANO Working Papers 98s-38, CIRANO.
    2. Marcel Boyer & Armel Jacques & Michel Moreaux, 2002. "On the Relationship Between Financial Status and Investment in Technological Flexibility," CIRANO Working Papers 2002s-14, CIRANO.
    3. Marcel Boyer & Armel Jacques & Michel Moreaux, 2001. "Bankruptcy Cost, Financial Structure and Technological Flexibility Choices," CIRANO Working Papers 2001s-27, CIRANO.

    More about this item

    Keywords

    Flexibility; observability; duopoly; Flexibilité; observabilité; duopole;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:cir:cirwor:98s-36. 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: (Webmaster). General contact details of provider: http://edirc.repec.org/data/ciranca.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.