Strategic Divisionalization, Product Differentiation and International Competition
AbstractIn this note we construct a simple international differentiated duopoly model that involves a divisionalization decision. It will be shown that the number of third market divisions of a parent firm with a cost advantage is relatively large. The results imply that the cost competitiveness of one country’s firm will be magnified through divisionalization decisions.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5120.
Date of creation: 2007
Date of revision:
divisionalization; product differentiation; cost competitiveness;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-10-06 (All new papers)
- NEP-BEC-2007-10-06 (Business Economics)
- NEP-COM-2007-10-06 (Industrial Competition)
- NEP-CSE-2007-10-06 (Economics of Strategic Management)
- NEP-MIC-2007-10-06 (Microeconomics)
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