Managing dynamic competition
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. (JEL C73, D44, L10).
Type
Journal articlePermalink
http://hdl.handle.net/10161/1737Published Version (Please cite this version)
10.1257/00028280260344461Publication Info
(2002). Managing dynamic competition. American Economic Review, 92(4). pp. 779-797. 10.1257/00028280260344461. Retrieved from http://hdl.handle.net/10161/1737.This is constructed from limited available data and may be imprecise. To cite this
article, please review & use the official citation provided by the journal.
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Tracy R. Lewis
Walter M. Upchurch, Jr. Professor of Business Administration in the Fuqua School of
Business
Tracy Lewis is Professor of Economics at the Fuqua School of Business at Duke University,
where he holds the Black Chair in Economics. Professor Lewis founded the Innovation
Center at the University. Prior to joining the Duke University Faculty in 2003, he
served on the faculties at the University of Florida, at the California Institute
of Technology, the University of British Columbia, and the University of California,
Davis. Aside from academic employment, he has also held positions at the Fed
Huseyin Yildirim
Professor of Economics
Professor Yildirim's recent research concerns charitable giving, sequencing of bilateral
negotiations, and the value of (non-)blind review. His papers have appeared in top
economics journals such as American Economic Review, Review of Economic Studies, Journal
of Economic Theory, and RAND journal of Economics.
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