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Strategic Divisionalization, Product Differentiation and International Competition

Kazumichi Iwasa and Toru Kikuchi

MPRA Paper from University Library of Munich, Germany

Abstract: In this note we construct a simple international differentiated duopoly model that involves a divisionalization decision. It will be shown that the number of third market divisions of a parent firm with a cost advantage is relatively large. The results imply that the cost competitiveness of one country’s firm will be magnified through divisionalization decisions.

Keywords: divisionalization; product differentiation; cost competitiveness (search for similar items in EconPapers)
JEL-codes: F12 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:5120

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