Observability, Commitment and Flexibility

Marcel Boyer, Armel Jacques and Michel Moreaux

CIRANO Working Papers from CIRANO

Abstract: We show that whether observing technological choices made by competitors is possible or not has significant impacts 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 to observe Nous montrons que la possibilité qu'ont, ou non, les entreprises d'observer leurs choix technologiques respectifs a des impacts significatifs sur les technologies qu'elles adopteront à l'équilibre. Selon les caractéristiques de l'industrie, la valeur stratégique de la flexibilité technologique peut être positive ou négative, et il est parfois préférable d'observer plutôt que d'être observé, parfois plus profitable d'être observé que d'observer.

Keywords: Flexibility; observability; duopoly; Flexibilité; observabilité; duopole (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 1998-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Observability, Commitment and Flexibility (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:98s-36

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