Strategic incentives of divestitures of competing conglomerates

Tan, Guofu; Yuan, Lasheng

doi:10.1016/s0167-7187(02)00120-0

Cited by 18 publications

(15 citation statements)

References 22 publications

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“…Studying firms' divestiture strategies, Tan and Yuan (2003) consider a market with imperfect substitutes and two firms competing in price. They demonstrate that firms may have incentives to divest along complementary lines.…”

Section: Introductionmentioning

confidence: 99%

Substituting Complements

Dari‐Mattiacci¹,

Parisi²

2006

Journal of Competition Law &Amp; Economics

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The presence of multiple sellers in the provision of (non-substitutable) complementary goods leads to outcomes that are worse than those generated by a monopoly (with a vertically integrated production of complements), a problem known in the economic literature as complementary oligopoly and recently popularized in the legal literature as the tragedy of the anticommons. We ask the following question: how many substitutes for each complement are necessary to render the presence of multiple sellers preferable to a monopoly? Highlighting the asymmetries between Cournot (quantity) and Bertrand (price) competition and their dual models, we show that the results crucially depend on whether firms compete by controlling price or quantity. Two substitutes per component are sufficient when firms choose price. However, when firms choose quantity, the availability of substitutes, regardless of their number, is ineffective. Considering more complex cases of multi-complementarity, we ask the related question of how many complements need to be substitutable and offer comments on equilibrium prices and quantities under different scenarios.JEL classification: D43, D62, K11, L13.

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Section: Introductionmentioning

confidence: 99%

Substituting Complements

Dari‐Mattiacci¹,

Parisi²

2006

Journal of Competition Law &Amp; Economics

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“…Research into corporate restructuring began in the mid-1970s (Tan and Yuan, 2003), but it was only in the 1990s that its interest increased considerably. Furrer et al (2008) include corporate restructuring among the top 20 research topics in SM.…”

Section: Literature Review On Corporate and Business Portfolio Restrumentioning

confidence: 99%

Quién es quién en la investigación sobre Reestructuración de la Cartera de Negocios: La estructura intelectual

Sánchez-Riofrío

Guerras‐Martín

Forcadell

2017

Rev. esp. doc. cient.

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There are few studies applying extensive qualitative and quantitative methods for addressing the research into Business Portfolio Restructuring (BPR). The aim of this paper is to identify the main authors, journals and studies that have informed the intellectual platform underpinning BPR as well as identifying the topics that have had the greatest impact. In this study, bibliographic references cited between 1959 and 2012, are analyzed using different bibliometric techniques. Three main results are found: first, the intellectual basis for this field involves a multidisciplinary and multifaceted literature, although the disciplines of finance and management are the principal contributors to research into BPR. Second, authors, journals and papers are identified to track the main framework of portfolio restructuring. Finally, the main forerunners of this study area are corporate strategy, divestitures, diversification and corporate governance. This is a study that contributes not only to the field of strategic management but also to information management.Keywords: Corporate restructuring; business portfolio restructuring; intellectual structure; bibliometric techniques; scientific production. Quién es quién en la investigación sobre Reestructuración de la Cartera de Negocios: La estructura intelectualResumen: Son pocos los estudios que aplican métodos cualitativos y cuantitativos extensivos para abordar la investigación sobre Reestructuración de la Cartera de Negocio (RCN). El objetivo de este trabajo es identificar los principales autores, revistas y estudios que han informado a la plataforma intelectual subyacente a RCN e identificar los temas que más han impactado. En este estudio, las referencias bibliográficas citadas entre 1959 y 2012, se analizan utilizando diferentes técnicas bibliométricas. Se encuentran tres resultados principales: primero, la base intelectual de este campo involucra una literatura multidisciplinaria y multifacética, aunque las disciplinas de finanzas y administración son los principales contribuyentes a la investigación en RCN. En segundo lugar, los autores, las revistas y los documentos se identifican para seguir el marco principal de la reestructuración de la cartera. Finalmente, los principales precursores de esta área de estudio son la estrategia corporativa, las desinversiones, la diversificación y el gobierno corporativo. Este es un estudio que contribuye no sólo en el campo de la gestión estratégica, sino también en el campo de la gestión de la información.Palabras clave: Reestructuración corporativa; Reestructuración de la cartera de negocios; Estructura intelectual; Técnicas bibliométricas; Producción científica.

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“…Baye et al (1996) model firms' strategic incentives to divide production among autonomous competing units through divisionalization, franchising, or divestiture, and derive equilibrium numbers of competing units. Tan and Yuan (2003) propose that product-line complementarities motivate divestiture of competing conglomerates. They show that, if the firms are able to coordinate their divestiture strategies, monopoly prices and profits can be achieved via a non-cooperative pricing game.…”

Section: Decentralized Production and Resource Allocationmentioning

confidence: 99%

Efficient horizontal mergers: The effects of internal capital reallocation and organizational form

Mialon

2008

International Journal of Industrial Organization

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Strategic incentives of divestitures of competing conglomerates

Cited by 18 publications

References 22 publications

Substituting Complements

Substituting Complements

Quién es quién en la investigación sobre Reestructuración de la Cartera de Negocios: La estructura intelectual

Efficient horizontal mergers: The effects of internal capital reallocation and organizational form

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