Observability, Commitment and Flexibility
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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|Date of creation:||1998|
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- Boyer, Marcel & Moreaux, Michel, 1996.
"Capacity Commitment versus Flexibility,"
IDEI Working Papers
63, Institut d'Économie Industrielle (IDEI), Toulouse.
- Vives, Xavier, 1989. "Technological competition, uncertainty, and oligopoly," Journal of Economic Theory, Elsevier, vol. 48(2), pages 386-415, August.
- Boyer, M. & Jacques, A. & Moreaux, M., 1998.
"Better Observability Promotes the Adoption of more Flexible Technologies,"
98.505, Toulouse - GREMAQ.
- Marcel Boyer & Armel Jacques & Michel Moreaux, 1998. "Better Observability Promotes the Adoption of More Flexible Technologies," CIRANO Working Papers 98s-38, CIRANO.
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