> That makes sense for the cars all made by the same company, or which > share subcontractors. But Toyota, Honda, Subaru, and Ford all make cars > with virtually the same shape and layout. > Robin Hanson [EMAIL PROTECTED] http://hanson.gmu.edu
Among management theory/organizational sociology types it's commonly believed that firms just copy each other once someone has innovated a solution to a problem (making cheap cars for the masses). It has to do with management fads. Why bother to come up with a totally different approach to small cheap cars when you can copy the competition and compete on labor costs and marketing, which are easier than coming up with new ideas? Or to rephrase in economic terms, risk averse managers prefer copying a proven strategy (low risk/low payoff) than engaging in R&D (high payoff/high risk). Fabio
