Strategic Divisionalization, Product Differentiation and International Competition

Iwasa, Kazumichi and Kikuchi, Toru (2007): Strategic Divisionalization, Product Differentiation and International Competition.

Abstract

In this note we construct a simple international differentiated duopoly model that involves a divisionalization decision. It will be shown that the number of third market divisions of a parent firm with a cost advantage is relatively large. The results imply that the cost competitiveness of one country’s firm will be magnified through divisionalization decisions.

• Item Type: MPRA Paper
• Institution: Kobe University
• Language: English
• Keywords: divisionalization; product differentiation; cost competitiveness
• Subjects: F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation

References

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