search query: @author Espinosa, M. / total: 2
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| Author: | Barecena-Ruiz, J. Espinosa, M. |
| Title: | Should multiproduct firms provide divisional or corporate incentives? |
| Journal: | International Journal of Industrial Organization
1999 : JUL, VOL. 17:5, p. 751-764 |
| Index terms: | INDUSTRIAL ORGANIZATION MULTIPRODUCT COMPANIES INCENTIVES |
| Language: | eng |
| Abstract: | The paper points out some of the implications of the internal organisation of a multiproduct firm for its market conduct. In particular, the authors study the strategic use of organizational forms based on corporate incentives versus forms based on divisional incentives. The equilibrium internal organization is determined in a model with full information. It is shown that firms provide corporate incentives when goods are substitutes and divisional incentives when goods are complements, and the result holds both in the case of quantity setting and price setting. |
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