摘要：This paper explores the impact of two operational issues, product flexibility and
production cost, on first-mover advantages and product design decisions in a myopic duopoly
setting. This research determines each firm's optimal design policy and provides criteria under
which the first entrant enjoys first-mover advantages. The results show that it is not always
beneficial for the first mover to have product flexibility when both firms are myopic. Another
interesting result is when the first mover has more flexibility both firms benefit but the late
mover may derive higher benefit.
