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Better Observability Promotes the Adoption of more Flexible Technologies

Author

Listed:
  • Boyer, M.
  • Jacques, A.
  • Moreaux, M.

Abstract

We study in this paper how the technological flexibility choices and equilibrium configurations depend first on the industry characteristics (demand function and cost parameters specific to the multiproduct flexible technology and to the product dedicated technologies) and, second, on the observability conditions prevailing in the industry. We show that better observability tends to promote the adoption of more flexible technologies.

Suggested Citation

  • Boyer, M. & Jacques, A. & Moreaux, M., 1998. "Better Observability Promotes the Adoption of more Flexible Technologies," Papers 98.505, Toulouse - GREMAQ.
    • Handle: RePEc:fth:gremaq:98.505
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    2. Boyer, M. & Jacques, A. & Moreaux, M., 1998. "Observability, Commitment and Flexibility," Papers 98.504, Toulouse - GREMAQ.

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    Keywords

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    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

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