Template-Type: ReDIF-Paper 1.0
Author-Name: Deng, W.
Author-Name-Last: Deng
Author-Name-First: Wendong
Author-Name: Hendrikse, G.W.J.
Author-Name-Last: Hendrikse
Author-Name-First: George
Title: On the Evolution of Product Portfolio of Cooperatives versus IOFs: An Agent-Based Analysis of the Single Origin Constraint
Abstract: An agent-based model is developed to address the relationship between the ownership structure of an
 enterprise and the evolution of its product portfolio. The coherence and evolution of a product
 portfolio is operationalized by transition rules regarding the Moore environment. The distinguishing
 feature of a cooperative is the single origin constraint according to Cook (1997), which is modelled
 as a cooperative assigning an infinite lifetime to the first product in its product portfolio, while all
 other products have finite lifetime. All product of an investor-owned firm (IOF) are assumed to have
 finite lifetime. Our simulation results show that the single origin constraint pulls the activities of the
 cooperative in one cluster centered around the first activity, while the IOF’s product portfolio
 develops in a centrifugal way. The cooperative and the IOF are more diversified in a mixed duopoly.
Length: 17
Creation-Date: 2022-05-30
File-URL: https://repub.eur.nl/pub/137122/ERS-2022-005-ORG.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2022-005-ORG
Keywords: Diversification, agent-based model, coherence, single origin constraint, cooperatives
Handle: RePEc:ems:eureri:137122