Flexibility and Industrial Organization Theory

Alfredo Monte and Fabio Massimo Esposito

Chapter 5 in Recent Developments in the Theory of Industrial Organization, 1992, pp 114-147 from Palgrave Macmillan

Abstract: Abstract The study of the determinants of intra-industry differences in firm size and organizational structure is a major field in industrial organization. Most industrial economists share the opinion that in the long run competition (selective mechanism) determines the success of only one organizational structure: the most efficient one. In the standard model of competitive equilibrium, production technology and market demand determine the size of the firms, all held to be identical.

Keywords: Cost Function; Switching Cost; Expected Profit; Competitive Equilibrium; Cost Curve (search for similar items in EconPapers)
Date: 1992
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DOI: 10.1007/978-1-349-11771-0_6

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