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A negative value indicates economies of scope, while a positive number implies economies of specialization.
Acting as if economies of scope were small so as to obtain lenient regulation, the conglomerate would get the countervailing effect of inducing the rival firms to expand in the unregulated market.
The verdict on economies of scope and which particular activities benefit from them is still out.
Furthermore, the economies of scope afforded to lawmakers via selective enforcement suggests that the rent extorted from a citizen could be distant and unrelated to the content of the selectively enforced law, making identifying coercion even more challenging.
A second contribution lies in the empirical evidence obtained showing that firms must consider political risk and the political environment as a source of potential opportunities--in this case to obtain economies of scope and create and sustain competitive advantages in markets where competitors without experience in managing risk cannot enter- and not just as a threat or a restriction (Garcia-Canal and Guillen 2008; Oliver and Holzinger 2008; Holburn and Zelner 2010; Jimenez and Delgado 2012; Jimenez et al.
While economies of scope may appear when a firm uses a single manufacturing plant to produce multiple products, they can also be present when a firm operates several plants that are supported by common overhead costs.
TABLE 4 Economies of Scope [ESC = (Cost A + Cost B - Cost C)/Cost C] (a): (a) All Hospitals; (b) For-Profit Hospitals Only All Hospitals Specialty 1st Quartile Median 3rd Quartile Hospitals (b) 1st Quartile (22.
For this reason, we formulate a two-stage Cournot game with economies of scope.
Also significantly, the Department does not contest that the economies of scope and scale achieved by JSAs are essential to maintaining a diverse ownership of broadcast stations.
The firm may be able to achieve economies of scope by leveraging standard systems and technology among investments (i.
The business case for Option B+ assumes that economies of scope are generated by implementation of the triple combination of PMTCT of HIV, treatment and treatment-as-prevention.
We also find that CCP market concentration decreases the entry probability of the other two plan types, PFFS plans and PDPs, which is consistent with joint decision making across products within firms, possibly due to economies of scope.