英文摘要 |
In some industries, the size of the main raw material used in each new generation of production line is much larger than that used in the previous generation. The main material also is more fully utilized. Therefore the output of each new generation increases dramatically, and its average variable cost decreases significantly. However, equipment users may have to play a main role in developing the new technology. When the expense of R&D and physical investment are financed mainly from a firm’s profit, a low-cost firm can strategically raise capacity utilization rate and force its rivals to give up initiating the developing process. The first question is whether low-cost firm can successfully deter high-cost firm from advancing to the new generation? Second, is it rational for the low-cost firm to adopt such a deterrence strategy? The findings of this paper are: when the capacity enlargement efficiency is large or small, the deterrence strategy would be unnecessary and ineffective respectively. When the capacity enlargement efficiency falls at a medium level, the deterrence strategy is both credible and effective in deterring the high-cost firm from developing new technology. The larger the cost difference between firms, the more likely it is that the low-cost firm will adopt deterrence strategy. |