Economics at your fingertips  

Flexible vs Dedicated Technology Adoption in the Presence of a Public Firm

Maria Jose Gil-Molto () and Joanna Poyago-Theotoky
Additional contact information
Maria Jose Gil-Molto: Dept of Economics, Loughborough University

Authors registered in the RePEc Author Service: Maria Jose Gil Molto

Discussion Paper Series from Department of Economics, Loughborough University

Abstract: We study firms' adoption of flexible versus dedicated technologies in the context of a mixed versus a private duopoly with product differentiation. The flexible technology allows a firm to become multiproduct or multimarket without bearing additional costs. We find that a configuration where both firms adopt flexible technologies is more likely to arise in equilibrium in the private duopoly. A similar result occurs when both firms use a dedicated technology in the case of either almost independent products or products that are close substitutes. Privatization of the public firm is socially beneficial only in limited circumstances.

Keywords: Flexible Technology; Privatization; Public Firm; Mixed Duopoly. (search for similar items in EconPapers)
JEL-codes: L13 L32 L33 O33 (search for similar items in EconPapers)
Date: 2006-01, Revised 2006-01
New Economics Papers: this item is included in nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, Loughborough University Contact information at EDIRC.
Bibliographic data for series maintained by Huw Edwards ().

Page updated 2024-04-14
Handle: RePEc:lbo:lbowps:2006_1