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

Comments

Direct link to article online: https://journal.hep.com.cn/fec/EN/10.3868/s060-008-019-0008-6

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

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