Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76521
Authors: 
Grossmann, Volker
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper 1047
Abstract: 
A positive relationship between firm size and product diversification is a long-standing stylized fact. However, so far there is no appropriate theoretical model to explain the underlying forces of this observation. This paper analyzes an oligopoly model with asymmetric multiproduct frms, which is capable of addressing this issue. The model suggests that intangible assets of firms, which affect marginal costs or perceived quality of goods within a firm's product line, play a key role for the empirical regularity that larger firms are more diversified.
Subjects: 
asymmetric equilibrium
diversification
firm size
intangible assets
multiproduct firms
Document Type: 
Working Paper

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