search query: @author Chang, M. / total: 2
reference: 2 / 2
« previous | next »
| Author: | Chang, M. |
| Title: | Flexible manufacturing, uncertain consumer tastes, and strategic entry deterrence |
| Journal: | Journal of Industrial Economics
1993 : MAR, VOL. 41:1, p. 77-90 |
| Index terms: | MANUFACTURING FLEXIBLE MANUFACTURING SYSTEMS UNCERTAINTY |
| Language: | eng |
| Abstract: | This paper investigate the strategic use of "flexible manufacturing" technology as an entry-deterring mechanism. It is shown that, when consumers' tastes fluctuate probabilistically, an incumbent threatened with potential entry installed flexible manufacturing technology for a larger set of probabilities that consumers' tastes will change, than the perfectly protected monopolist. The differential probability sets represent the intent of the monopoly incumbent strategically to use product-design flexibility for deterring entry into the potential market and maintain its dominance under fluctuating consumer tastes. |
« previous | next »
SCIMA