Abstract Based on the game theory,by solving the optimal capacity investment decision made by 2 firms, the optimal survival probability of the startup and the optimal profit of the established firm under different competitive strategies are obtained first. Then, the equilibrium technology choices of the 2 firms are obtained, and the Nash equilibrium of the mix flexible technology game is established. The result shows that in competitive setting, the startup would choose dedicated technology. However, the established firm is more sensitive to the demand variance and market size, and will choose mix flexibility under high demand variance and large market size.
2015, Vol. 12 
