Economies of diversification: A generalization and decomposition of economies of scope

被引:38
|
作者
Chavas, Jean-Paul [1 ]
Kim, Kwansoo [2 ]
机构
[1] Univ Wisconsin, Dept Agr & Appl Econ, Madison, WI 53706 USA
[2] Seoul Natl Univ, Dept Agr Econ & Rural Dev, Seoul 151, South Korea
关键词
Diversification; Specialization; Scope; Complementarity; Scale; Fixed cost; RESEARCH-AND-DEVELOPMENT; NONPARAMETRIC APPROACH; BANKING INDUSTRY; COST FUNCTION; FIXED COSTS; SCALE; TELECOMMUNICATIONS; COMPLEMENTARITIES; EFFICIENCY; FRONTIER;
D O I
10.1016/j.ijpe.2010.03.010
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
The paper investigates the benefits of diversification for a multi-product firm. It examines economies of diversification, reflecting the cost reduction associated with producing outputs in an integrated firm (compared to specialized firms). The analysis applies under complete specialization as well as partial specialization (when firms are not fully specialized and/or when the specialization scheme does not cover all outputs). It decomposes economies of diversification into four additive parts: a part measuring complementarity among outputs; a part reflecting economies of scale; a part reflecting convexity; and a part reflecting the role of fixed cost. This new decomposition appears useful in investigating how scale effects, complementarity effects, and convexity effects can contribute to economies of scope in a multiproduct firm and helps generate valuable insights into the economics of specialization for multiproduct firms. (C) 2010 Elsevier B.V. All rights reserved.
引用
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页码:229 / 235
页数:7
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