Managing Dynamic Competition

Tracy R. Lewis and Huseyin Yildirim (2002) “Managing Dynamic Competition." The American Economic Review, Vol. 92, No. 4 (Sep., 2002) (pp. 779-797). (In JSTOR: Page Scan PDF Summary)

notes by yinung

聽過一種說法: 大廠在向供應商採購時, 會故意隔幾年向另向一個競爭廠下大量訂單, 以讓這些廠商形成具有經濟規模的競爭者… 這一篇看起來好像在講這個故事

Original abstract

In many important high-technology markets, including software development, data processing, communications, aeronautics, and defense, suppliers learn through experience how to provide better service at lower cost. This paper examines how a buyer designs dynamic competition among rival suppliers to exploit learning economies while minimizing the costs of becoming locked in to one producer. Strategies for controlling dynamic competition include the handicapping of more efficient suppliers in procurement competitions, the protection and allocation of intellectual property, and the sharing of information among rival suppliers.


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