FLEXIBILITY AND COMPETITION IN U.S. FOOD MANUFACTURING FIRMS: ARE FIRMS TOO INFLEXIBLE?

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We analyse the flexibility decision of firms in a two-stage duopoly game of complete information and test the models implications using panel data of U.S. food industries. We find a positive relationship between flexibility and market power. Flexibility in food manufacturing industries is significantly higher than in all other industries.

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http://hdl.handle.net/123456789/534476

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https://ageconsearch.umn.edu/record/20596/files/sp01we01.pdf

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University of Minnesota