Observation, Flexibility and Industry Technological Structure

Marcel Boyer, Armel Jacques and Michel Moreaux

Annals of Economics and Statistics, 2002, issue 65, 173-194

Abstract: We study the links between observation and flexible technological choices in a duopolistic industry. We show that, in large markets, the strategic value of flexibility is positive and the observation of technological choices promotes the adoption of more flexible technologies whereas in small markets, the strategic value of flexibility is negative and such observation decreases the level of flexibility chosen by firms.

Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2002:i:65:p:173-194

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