Competition and cooperation within a multidivisional firm
Article Abstract:
The issue of managerial incentives within the context of a multidivisional firm with separate decision centers is investigated in a two-stage game model. The issue is important because of the prevailing condition wherein managers, instead of owners, are the decision-makers in firms resulting in a situation where owners can devote themselves to non-profit maximizing activities. Owners set incentive programs which managers can choose from across divisions. It was suggested competition should be increased in divisions bound together by technological processes while competition should be instituted among divisions which sell similar products.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1995
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Japan's corporate groups: collusive or competitive? An empirical investigation of keiretsu behavior
Article Abstract:
A study was conducted to determine whether Japanese financial groups, known as keiretsu, differ from other Japanese firms. Data from manufacturing firms listed on the Tokyo Stock Exchange were analyzed. Keiretsu-affiliated firms were found to compete at higher levels than independent firms, explaining the difficulty of entering markets with strong keiretsu presence.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1995
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