Technological competition, uncertainty, and oligopoly
type: Item
instance of: scholarly article
title: Technological competition, uncertainty, and oligopoly
zbMATH Open document ID: 0684.90006
DOI: 10.1016/0022-0531(89)90034-3
author: Xavier Vives
published in: Journal of Economic Theory
publication date: 1989-01-01T00:00:00Z
review text: In an oligopoly context the present technological choice of a firm which expects to receive private relevant information just prior to the uncertain market stage has both a flexibility value and a strategic commitment value. In contrast to some common wisdom ideas we provide a natural two-stage competition framework in which an increase in uncertainty always rises the commitment value of the technological choice of the firm and may decrease its flexibility value when the increased uncertainty takes the form of more variable beliefs. The first result tends to reinforce therefore the findings of the strategic commitment literature under certainty.
Mathematics Subject Classification ID: 91B24
Mathematics Subject Classification ID: 91B38
zbMATH DE Number: 4121697
zbMATH Keywords: oligopoly
zbMATH Keywords: technological choice
zbMATH Keywords: flexibility value
zbMATH Keywords: strategic commitment value
zbMATH Keywords: two-stage competition framework
MaRDI profile type: Publication
full work available at URL: 0022-0531(89)90034-3
OpenAlex ID: W2081732460
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description: scientific article; zbMATH DE number 4121697