Harvard Business Review
Optimal investment in product-flexible manufacturing capacity
Management Science
Competition and investment in flexible technologies
Management Science
Principles on the benefits of manufacturing process flexibility
Management Science
Investment Strategies for Flexible Resources
Management Science
Process Flexibility in Supply Chains
Management Science
Strategic Technology Choice and Capacity Investment Under Demand Uncertainty
Management Science
Quantifying the flexibility of a manufacturing system by applying the transfer function
International Journal of Computer Integrated Manufacturing
Evaluation of flexibility for the effective change management of manufacturing organizations
Robotics and Computer-Integrated Manufacturing
Customer's behaviour modelling for manufacturing planning
International Journal of Computer Integrated Manufacturing
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This paper examines the conditions under which a firm would choose a flexible production technology or a dedicated technology in a duopoly environment. We model this technology choice by having two firms simultaneously select from two production technologies in the first stage and subsequently take in a Cournot production quantity subgame. Conditions under which technology equilibriums exist are given. We find that the premium a firm is willing to pay for flexibility increases as the market size increases and the product substitutability decreases. We also find that Prisoner's Dilemma does not necessarily occur in the production technology game, which is different from previous studies.