Business diversification and multifaceted markets

Koki Arai and Shuya Hayashi
Additional contact information
Shuya Hayashi: Nagoya University

International Journal of Economic Policy Studies, 2021, vol. 15, issue 2, No 1, 235-255

Abstract: Abstract In this paper, we examine multiple segments, conventionally analyzed from the perspective of business diversification, from multiple perspectives in a multifaceted market. Specifically, based on segmental financial data, we conduct an empirical analysis of whether increased sales in the transportation business increase the profit margin of the real estate business of a railroad company. The results show that there are two types of sidedness among many businesses. The effects of both positive and negative indirect network effects were found to exist. In addition, verification of the difference-in-differences based on the initiation event of the mutual traffic interconnection demonstrates the indirect network effect in the transportation business to a certain extent, and shows that the effect is not uniform in each business, with some businesses showing strong effects and others showing less visible effects.

Keywords: Business diversification; Indirect network effect; Japan; Multifaced market (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s42495-021-00058-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:ijoeps:v:15:y:2021:i:2:d:10.1007_s42495-021-00058-1

Ordering information: This journal article can be ordered from
https://www.springer ... policy/journal/42495

DOI: 10.1007/s42495-021-00058-1

Access Statistics for this article

International Journal of Economic Policy Studies is currently edited by Akira Maeda

More articles in International Journal of Economic Policy Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().