Management Science Vol. 49 No. 9 2003
Remark on “Appropriateness and Impact of Platform-Based Product Development”
Abstract
When platform-based manufacturing exhibits overdesign costs then platform adoption will lead to a decrease in product line differentiation. In contrast, Krishnan and Gupta (2001) argued that in the presence of overdesign costs and platform economies, platform production always leads to a more differentiated product family. While Krishnan and Gupta analyzed one particular parameterized cost function and define overdesign costs and platform economies narrowly in terms of their parameters, I propose a general definition of overdesign costs and show that platform adoption reduces product differentiation for all cost functions satisfying this definition, regardless of whether or not they exhibit platform economies.
- DOI
- 10.1287/mnsc.49.9.1264.16572
- Volume
- 49
- Issue
- 9
- Pages
- 1264-1267
- Language
- en
- Sources
- bibtex:phds-export.bib crossref openalex