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Information disclosure and technology choice

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Is it in the interest of a firm to disclose information about its technology or cost structure ? Should another firm take such information into account in its market decisions ? In what kind of industry should one expect firms to exchange information on their costs ? How does it affect the firms' initial choice of technology ? The crucial difference with previous work on this problem is that here, a firm's cost structure, instead of being exogenously given, results from a strategic decision. This lead to radically different predictions

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/Inseadwp1992/92-18.pdf

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Copyright INSEAD. All rights reserved