On the competitive effects of divisionalization

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RECERCAT Home > Universitat Autònoma de Barcelona > Articles escrits per personal UAB o publicats per la universitat > View document

dc.contributor.author	Corchón, Luis C.
dc.contributor.author	González-Maestre, Miguel
dc.date	2000
dc.identifier	https://ddd.uab.cat/record/220896
dc.identifier	urn:10.1016/S0165-4896(98)00047-X
dc.identifier	urn:oai:ddd.uab.cat:220896
dc.identifier	urn:recercauab:ARE-15361
dc.identifier	urn:articleid:01654896v39n1p71
dc.identifier	urn:oai:egreta.uab.cat:publications/128c14df-dfd7-4b5b-bee2-3ac543a5b15c
dc.identifier	urn:scopus_id:0040310922
dc.identifier	urn:wos_id:000084535000006
dc.format	application/pdf
dc.language	eng
dc.publisher
dc.relation	Mathematical social sciences ; Vol. 39 Núm. 1 (gener 2000), p. 71-79
dc.rights	open access
dc.rights	Tots els drets reservats.
dc.rights	https://rightsstatements.org/vocab/InC/1.0/
dc.subject	Divisionalization
dc.subject	Oligopoly
dc.title	On the competitive effects of divisionalization
dc.type	Article
dc.description.abstract	Altres ajuts: DGICYT/PB93-0940
dc.description.abstract	Altres ajuts: DGICYT/PB96-1192
dc.description.abstract	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.

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