Better Observability Promotes the Adoption of more Flexible Technologies
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.
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- 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.
"Observability, Commitment and Flexibility,"
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- W. Bentley MacLeod & Daniel Parent, 1999.
"Job characteristics, wages, and the employment contract,"
Federal Reserve Bank of St. Louis, issue May, pages 13-27.
- W. Bentley MacLeod & Daniel Parent, 1998. "Job Characteristics, Wages and the Employment Contract," CIRANO Working Papers 98s-37, CIRANO.
- Eaton, B Curtis & Schmitt, Nicolas, 1994.
"Flexible Manufacturing and Market Structure,"
American Economic Review,
American Economic Association, vol. 84(4), pages 875-88, September.
- Donald Gerwin, 1993. "Manufacturing Flexibility: A Strategic Perspective," Management Science, INFORMS, vol. 39(4), pages 395-410, April.
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