search query: @author Gonzalez-Maestre, M. / total: 5
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| Author: | Gonzalez-Maestre, M. |
| Title: | Divisionalization and delegation in oligopoly |
| Journal: | Journal of Economics and Management Strategy
2000 : FALL, VOL. 9:3, p. 321-338 |
| Index terms: | MANAGEMENT ECONOMICS OLIGOPOLY |
| Language: | eng |
| Abstract: | The author considers a model where oligopolistic firms create independent divisions of franchises, which subsequently delegate output decisions to managers. The author shows that the number of firms required to make divisionalization privately profitable is greater in his model than in previous pure divisionalization models. However, in contrast with pure delegation models, the author shows that the subgame perfect Nash equilibrium approaches perfect competition as divisionalization costs tends to zero, even with a small fixed number of firms. |
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