This paper studies the impact of competition on a firm's choice of technology (product-flexible or product-dedicated) and capacity investment decisions. Specifically, we model two firms competing with each other in two markets characterized by price-dependent and uncertain demand. The firms make...

We analyze volume flexibility--the ability to produce above/below the installed capacity for a product--under endogenous pricing in a two-product setting. We discover that the value of volume flexibility is a function of demand correlation between products, an outcome that cannot be explained by...

Product launch - an event when a new product debuts for production in a plant - is an important phase in product development. But launches disrupt manufacturing operations resulting in productivity losses. Using data from North-American automotive plants from years 1999-2007, we estimate that a...