TESORIERE, Antonio - Center for Operations Research and Econometrics (CORE), … - 2007
This paper examines a three-stage model of divisionalization where, first, two parent firms create independent units … incentives toward divisionalization severely, relative to other existing models. Namely, the scope for divisionalization in … optimal. In addition, the no divisionalization outcome is sustainable in equilibrium only if it is socially optimal. …