The Meaning of Adjustment Costs in the Theory of Firm
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The Meaning of Adjustment Costs in the Theory of Firm
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 111 (1991), Iss. 3 : pp. 425–435
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Windsperger, Josef
Cited By
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Neue Perspektiven des Strategischen Kompetenz-Managements
Beitrag der Theorie der Kompetenzentwicklung zur Erklärung des kompetenzgestützten Wettbewerbskampfs in der Automobilindustrie
Proff, Heike
2006
https://doi.org/10.1007/978-3-8350-9313-3_3 [Citations: 3]
Abstract
Adjustment costs as 'costs' of incomplete flexibility and mobility of input factors are the decision criterion to evaluate the economic efficiency of adjustment strategies in the disequilibrium of the firm. Further, under intermarket adjustment strategies adjustment costs as intermarket mobility costs are a generalization of the market entry and market exit barrier concept used in the industrial organization theory. Moreover, if the firm is regarded as a production and coordination mechanism, the ratio between economically fixed and variable costs depends on the extent of adjustment costs resulting from mobility and flexibility barriers.