On the competitive effects of divisionalization

In this paper, we assume that firms can create independent divisions which compete in quantities in a homogeneous good market. Assuming identical firms and constant returns to scale, we prove that the strategic interaction of firms yields Perfect Competition if the number of firms is beyond some cri...

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Detalles Bibliográficos
Autores: Corchón, Luis C., González-Maestre, Miguel
Tipo de recurso: artículo
Fecha de publicación:2000
País:España
Institución:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:ddd.uab.cat:220896
Acceso en línea:https://ddd.uab.cat/record/220896
https://dx.doi.org/urn:doi:10.1016/S0165-4896(98)00047-X
Access Level:acceso abierto
Palabra clave:Divisionalization
Oligopoly
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spelling On the competitive effects of divisionalizationCorchón, Luis C.González-Maestre, MiguelDivisionalizationOligopolyIn this paper, we assume that firms can create independent divisions which compete in quantities in a homogeneous good market. Assuming identical firms and constant returns to scale, we prove that the strategic interaction of firms yields Perfect Competition if the number of firms is beyond some critical level. Assuming a fixed cost per firm and an upper bound on the maximum number of divisions, we show that when this upper bound tends to infinity and the fixed cost tends to zero, market equilibrium may yield either Perfect Competition or a Natural Oligopoly. 22000-01-0120002000-01-01Articlehttp://purl.org/coar/resource_type/c_6501AMhttp://purl.org/coar/version/c_ab4af688f83e57aainfo:eu-repo/semantics/articleapplication/pdfhttps://ddd.uab.cat/record/220896https://dx.doi.org/urn:doi:10.1016/S0165-4896(98)00047-Xreponame:Dipòsit Digital de Documents de la UABinstname:Universitat Autònoma de BarcelonaInglésengopen accesshttp://purl.org/coar/access_right/c_abf2Aquest material està protegit per drets d'autor i/o drets afins. Podeu utilitzar aquest material en funció del que permet la legislació de drets d'autor i drets afins d'aplicació al vostre cas. Per a d'altres usos heu d'obtenir permís del(s) titular(s) de drets.https://rightsstatements.org/vocab/InC/1.0/info:eu-repo/semantics/openAccessoai:ddd.uab.cat:2208962026-06-06T12:50:31Z
dc.title.none.fl_str_mv On the competitive effects of divisionalization
title On the competitive effects of divisionalization
spellingShingle On the competitive effects of divisionalization
Corchón, Luis C.
Divisionalization
Oligopoly
title_short On the competitive effects of divisionalization
title_full On the competitive effects of divisionalization
title_fullStr On the competitive effects of divisionalization
title_full_unstemmed On the competitive effects of divisionalization
title_sort On the competitive effects of divisionalization
dc.creator.none.fl_str_mv Corchón, Luis C.
González-Maestre, Miguel
author Corchón, Luis C.
author_facet Corchón, Luis C.
González-Maestre, Miguel
author_role author
author2 González-Maestre, Miguel
author2_role author
dc.subject.none.fl_str_mv Divisionalization
Oligopoly
topic Divisionalization
Oligopoly
description In this paper, we assume that firms can create independent divisions which compete in quantities in a homogeneous good market. Assuming identical firms and constant returns to scale, we prove that the strategic interaction of firms yields Perfect Competition if the number of firms is beyond some critical level. Assuming a fixed cost per firm and an upper bound on the maximum number of divisions, we show that when this upper bound tends to infinity and the fixed cost tends to zero, market equilibrium may yield either Perfect Competition or a Natural Oligopoly.
publishDate 2000
dc.date.none.fl_str_mv 2
2000-01-01
2000
2000-01-01
dc.type.none.fl_str_mv Article
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url https://ddd.uab.cat/record/220896
https://dx.doi.org/urn:doi:10.1016/S0165-4896(98)00047-X
dc.language.none.fl_str_mv Inglés
eng
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