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Consumer Search, Competition, and the Organizational Structure of Multi-Unit Firms

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  • Myong-Hun Chang and Joseph E. Harrington, Jr.

Abstract

A computational model of competing multi-unit firms, such as a retail chain, is developed in which unit managers and corporate staff continually search for better practices while consumers search among units to find a better match. The main objective of this research is to determine how the amount of discretion given to unit managers, as to how they run their units, influences the rate of innovation. A primary finding is that the presence of competition enhances the relative performance of the centralized form though an increased rate of consumer search differentially benefits the decentralized form.

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File URL: http://academic.csuohio.edu/changm/files/CHANG-SCE-01.pdf
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Bibliographic Info

Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2001 with number 54.

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Date of creation: 01 Apr 2001
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Handle: RePEc:sce:scecf1:54

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Web page: http://www.econometricsociety.org/conference/SCE2001/SCE2001.html
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Keywords: Search; Organizational Structure; Multi-Unit Firms;

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