EconPapers    
Economics at your fingertips  
 

Welfare‐improving cooperation with a consumer‐friendly multiproduct corporation

Arturo García, Mariel Leal and Sang-Ho Lee ()

Managerial and Decision Economics, 2020, vol. 41, issue 7, 1144-1155

Abstract: We consider a multiproduct corporation that adopts consumer‐friendly activities and cooperates with single‐plant firms for improving welfare. We show that full cooperation is socially beneficial if products are strong complements, whereas partial cooperation with higher consumer‐friendly activities is beneficial if products are substitutes. We also examine a sequential choice game of endogenous cooperation in which the multiproduct corporation can induce (partial or full) cooperation and show that our findings are still consistent at equilibrium. We finally compare different ownership of the single‐plant firms and find that foreign ownership decreases the benefits of cooperation.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1002/mde.3161

Related works:
Working Paper: Welfare-improving cooperation with a consumer-friendly multiproduct corporation (2020) Downloads
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:wly:mgtdec:v:41:y:2020:i:7:p:1144-1155

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-02-15
Handle: RePEc:wly:mgtdec:v:41:y:2020:i:7:p:1144-1155