Organizational choice and product differentiation
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.
|ERIM Article Series (EAS)|
|Managerial and Decision Economics: the international journal of research and progress in management economics|
|Organisation||Erasmus Research Institute of Management|
Hendrikse, G.W.J. (1991). Organizational choice and product differentiation. Managerial and Decision Economics: the international journal of research and progress in management economics, 361–366. doi:10.1002/mde.4090120504