Organizational choice and product differentiation
View PDF Version
(1991 Organizational Choice and Entry Deterrence.pdf, 0.3MB)
Redirect to publisher's version
(publisher's version.url.txt, 40 bytes)
A centralized structure will set higher prices and locate products closer together than a decentralized one. A decentralized organizational structure is chosen because the entry-deterring effect of such a structure outweighs the monopoly effects of a centralized one for sufficiently low entry fee levels.