Strategic Choice of Flexible Production Technologies and Welfare Implications

@inproceedings{Roeller1990StrategicCO,
  title={Strategic Choice of Flexible Production Technologies and Welfare Implications},
  author={Lars-Hendrik Roeller and Mihkel Tombak},
  year={1990}
}
This paper examines the market conditions under which firms would choose a more flexible production technology with respect to product design. The authors use a two-stage game in which firms choose between flexible and less flexible production technologies in the first stage and subsequently choose output. They find that consumers would benefit from the introductions of flexible production technologies. In their model, the authors' also find that the production technology game is a prisoner's… CONTINUE READING

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