Market Structure and Organizational Form.

This article studies the determinants of a firm's organizational form in the context of an imperfectly competitive industry. There are two kinds of organizational forms: the multidivisional form (M-form) and the unitary form (U-form). An M-form firm suffers from ignorance of demand externalities amo...

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Detalles Bibliográficos
Publicado en:Southern Economic Journal Vol. 71; no. 4; pp. 705 - 720
Autor principal: Zhou, Haiwen
Formato: Artículo
Publicado: Wiley-Blackwell Apr2005
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:This article studies the determinants of a firm's organizational form in the context of an imperfectly competitive industry. There are two kinds of organizational forms: the multidivisional form (M-form) and the unitary form (U-form). An M-form firm suffers from ignorance of demand externalities among different products and double marginalization is eliminated. In contrast, in a U-form firm, demand externalities are taken into consideration and double marginalization exists. A firm's optimal choice of organizational form depends on the market structure.