Divisionalization in vertical structures

IF 2.5 3区经济学 Q2 ECONOMICS

Managerial and Decision Economics Pub Date : 2024-07-19 DOI:10.1002/mde.4328

Lluís Bru, Ramon Fauli-Oller, José-Manuel Ordóñez-de-Haro

引用次数: 0

Abstract

We evaluate the incentives to create within-industry independent divisions once the vertical structure of the industry is considered. Divisionalization allows a firm to gain market share in the final market, but it also leads to an increase in total payments to the input supplier. The less competitive the upstream market, the more important the second effect will be, and this reduces the profitability of divisionalization. As a consequence, a less competitive upstream segment leads to a lower total number of divisions in equilibrium and a less competitive final market, harming end consumers who will face higher prices.

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纵向结构中的分工

一旦考虑到行业的纵向结构，我们就会评估建立行业内独立分部的激励机制。事业部制使企业能够在最终市场上获得市场份额，但同时也会导致向投入品供应商支付的总金额增加。上游市场竞争越不激烈，第二种效应就越重要，从而降低了分工的盈利能力。因此，上游市场的竞争性越弱，平衡状态下的部门总数就越少，最终市场的竞争性就越弱，最终消费者就会受到损害，因为他们将面临更高的价格。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Managerial and Decision Economics Multiple-

CiteScore

1.40

自引率

18.20%

发文量

242

期刊介绍： Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.