market is medium-sized, and the products are imperfect substitutes. The sales maximization for divisionalization plays an …

This paper examines a three-stage model of divisionalization where, first, two parentfirms create independent units … toward divisionalization severely, relative to other existingmodels. Namely, the scope for divisionalization in equilibrium … addition,to no divisionalization outcome is sustainable in equilibrium only if it is sociallyoptimal.... …

This paper examines a three-stage model of divisionalization wher, first, two parents firms create independent unts … 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. …