IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v81y1991i4p901-11.html
   My bibliography  Save this article

The Geometry of Supply, Demand, and Competitive Market Structure with Economies of Scope

Author

Listed:
  • Eaton, B Curtis
  • Lemche, S Q

Abstract

The geometry of a two-good partial-equilibrium model with economies of scope is presented. There are three types of firms: diversified firms that produce both goods and two types of specialized firms. Thus, there are five possible industry market structures: one involving all three types of firms, three involving two types of firms, and one involving only diversified firms. The authors show that the equilibrium market structure is jointly determined by supply (cost) and demand conditions and that any market structure involving more types of firms than goods is an unlikely occurrence. Copyright 1991 by American Economic Association.

Suggested Citation

  • Eaton, B Curtis & Lemche, S Q, 1991. "The Geometry of Supply, Demand, and Competitive Market Structure with Economies of Scope," American Economic Review, American Economic Association, vol. 81(4), pages 901-911, September.
    • Handle: RePEc:aea:aecrev:v:81:y:1991:i:4:p:901-11
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0002-8282%28199109%2981%3A4%3C901%3ATGOSDA%3E2.0.CO%3B2-7&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Arzaghi & Ernst R. Berndt & James C. Davis & Alvin J. Silk, 2008. "Economic Factors Underlying the Unbundling of Advertising Agency Services," NBER Working Papers 14345, National Bureau of Economic Research, Inc.
    2. Masao Nakagawa, 2007. "Synergies and Investment Decisions," Economics Bulletin, AccessEcon, vol. 7(5), pages 1-11.
    3. repec:ebl:ecbull:v:7:y:2007:i:5:p:1-11 is not listed on IDEAS
    4. Guangliang Ye, 2016. "Leadership and Privatisation in a Mixed Multi-product Oligopoly: An Endogenous Timing Model," Australian Economic Papers, Wiley Blackwell, vol. 55(2), pages 170-180, June.
    5. Olivier Chatain & Peter Zemsky, 2007. "The Horizontal Scope of the Firm: Organizational Tradeoffs vs. Buyer-Supplier Relationships," Management Science, INFORMS, vol. 53(4), pages 550-565, April.
    6. Alvin J. Silk & Ernst R. Berndt, 1994. "Costs, Institutional Mobility Barriers, and Market Structure: Advertising Agencies as Multiproduct Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 3(3), pages 437-480, September.
    7. Shaik, Saleem & Addey, Kwame & Yeboah, Osei, 2017. "Efficiency Gains Due To Economies Of Scope And Scale," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252790, Southern Agricultural Economics Association.
    8. Alvin J. Silk & Ernst R. Berndt, 1994. "Costs, Institutional Mobility Barriers, and Market Structure: Advertising Agencies as Multiproduct Firms," NBER Working Papers 4826, National Bureau of Economic Research, Inc.
    9. Helmers, Glenn A. & Shaik, Saleem & Atwood, Joseph A., 2003. "Social And Scale Efficiency Gains Due To Vertical Integration In The U.S. Hog Sector," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35143, Southern Agricultural Economics Association.
    10. Federico Ciliberto & John C. Panzar, 2011. "Outsourcing and Vertical Integration in a Competitive Industry," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 885-900, April.
    11. Martin G. H. Wu, 2006. "An Economic Analysis of Audit and Nonaudit Services: The Trade†off between Competition Crossovers and Knowledge Spillovers," Contemporary Accounting Research, John Wiley & Sons, vol. 23(2), pages 527-554, June.
    12. Helmers, Glenn A. & Langemeier, Michael R. & Shaik, Saleem, 2005. "Measuring Scope And Scale Efficiency Gains Due To Specialization," 2005 Annual meeting, July 24-27, Providence, RI 19388, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:81:y:1991:i:4:p:901-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.