Document Type
Article
Publication Date
2019
DOI
10.3868/s060-008-019-0008-6
Publication Title
Frontiers of Economics in China
Volume
14
Issue
1
Pages
131-148
Abstract
Impact of coordination costs and market size on a firm’s choice of technology is studied in a general equilibrium model in which firms engage in oligopolistic competition. A firm establishes an organizational hierarchy to coordinate its production. First, it is shown that an increase in market size leads a firm to choose a more specialized technology. Second, surprisingly, a robust result is that an increase in the level of coordination efficiency leads a firm to choose a less specialized technology.
Rights
© 2019 Higher Education Press
Original Publication Citation
Zhou, H. (2019). Coordination costs, market size, and the choice of technology. Frontiers of Economics in China, 14(1), 131-148. https://journal.hep.com.cn/fec/EN/10.3868/s060-008-019-0008-6
Repository Citation
Zhou, Haiwen, "Coordination Costs, Market Size, and the Choice of Technology" (2019). Economics Faculty Publications. 58.
https://digitalcommons.odu.edu/economics_facpubs/58
Comments
Direct link to article online: https://journal.hep.com.cn/fec/EN/10.3868/s060-008-019-0008-6