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Better Observability Promotes the Adoption of More Flexible Technologies

Marcel Boyer (), Armel Jacques and Michel Moreaux

CIRANO Working Papers from CIRANO

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. On étudie dans cet article comment les choix technologiques et les configurations techniques d'équilibre dépendent premièrement des caractéristiques de l'industrie (fonctions de demande et paramètres de coûts spécifiques de la technique multiproduit flexible et de la technique de production, non flexible, de chaque bien), ainsi que des conditions d'observation des choix des concurrents. On montre qu'une meilleure observabilité des choix favorise l'émergence de technologies plus flexibles.

Keywords: Flexible manufacturing technology; commitment; strategic equilibrium; Technologie flexible; engagement; équilibre stratégique (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 1998-11-01
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Working Paper: Better Observability Promotes the Adoption of more Flexible Technologies (1998)
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