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

C-Tier
Journal: Southern Economic Journal
Year: 2008
Volume: 74
Issue: 4
Pages: 997-1016

Authors (2)

María José Gil‐Moltó (not in RePEc) Joanna Poyago‐Theotoky (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study firms' adoption of flexible technologies in the context of a mixed versus a private duopoly with product differentiation. As opposed to a dedicated technology, a 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 almost independent or close substitute products. Privatization of the public firm is socially beneficial in limited circumstances.

Technical Details

RePEc Handle
repec:wly:soecon:v:74:y:2008:i:4:p:997-1016
Journal Field
General
Author Count
2
Added to Database
2026-01-25