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|
|Date of revision:|
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- Marcel Boyer & Michel Moreaux, 1997.
"Capacity Commitment versus Flexibility,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 6(1), pages 347-376, 06.
- Marcel Boyer & Armel Jacques & Michel Moreaux, 1998.
"Better Observability Promotes the Adoption of More Flexible Technologies,"
CIRANO Working Papers
- Boyer, M. & Jacques, A. & Moreaux, M., 1998. "Better Observability Promotes the Adoption of more Flexible Technologies," Papers 98.505, Toulouse - GREMAQ.
- Vives, Xavier, 1989. "Technological competition, uncertainty, and oligopoly," Journal of Economic Theory, Elsevier, vol. 48(2), pages 386-415, August.
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