Strategic Choice of Flexible Production Technologies and Welfare Implications: Addendum et Corrigendum

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In a recent article in this journal, Roller and Tombak [1990] analyse the strategic choice of modern flexible production technologies. They develop a two-stage game in which firms choose between a flexible technology and a dedicated technology in the first stage and subsequently choose output. This note corrects an error in one of the graphs in that paper, provides an interpretation of the new graph and extends the analysis by allowing for mixed strategies and complementary products.