Sequential Divestiture and Firm Asymmetry
Author
Source
Economics Research International
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-03-11
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
Simple Cournot models of divestiture tend to generate incentives to divest which are too strong, predicting that firms will break up into an infinite number of divisions resulting in perfect competition.
This paper shows that if the order of divestitures is endogenized, firms will always choose sequential, and hence very limited, divestitures.
Divestitures favor the larger firm and the follower in a sequential game.
Divestitures in which the larger firm is the follower generate greater industry profit and social welfare, but a smaller consumer surplus.
American Psychological Association (APA)
Zhou, Wen. 2013. Sequential Divestiture and Firm Asymmetry. Economics Research International،Vol. 2013, no. 2013, pp.1-11.
https://search.emarefa.net/detail/BIM-465175
Modern Language Association (MLA)
Zhou, Wen. Sequential Divestiture and Firm Asymmetry. Economics Research International No. 2013 (2013), pp.1-11.
https://search.emarefa.net/detail/BIM-465175
American Medical Association (AMA)
Zhou, Wen. Sequential Divestiture and Firm Asymmetry. Economics Research International. 2013. Vol. 2013, no. 2013, pp.1-11.
https://search.emarefa.net/detail/BIM-465175
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-465175