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dc.contributor.author Oliva, M. Àngels
dc.contributor.author Rivera-Bátiz, Luis
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2017-07-26T10:50:14Z
dc.date.available 2017-07-26T10:50:14Z
dc.date.issued 1997-08-01
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=232
dc.identifier.uri http://hdl.handle.net/10230/1179
dc.description.abstract We present a model of conglomeration motivated by technology synergies and strategic reductions in variable costs in the face of competitive pressures. The resulting firm integration is neither horizontal nor vertical but rather congeneric integration of firms in related industries. We endogenize the industrial conglomeration structure and examine the effects of competition between conglomerates, and between a conglomerate and independent firms. We show that there is an equilibrium synergy trap in which conglomerates are formed to exploit economies of scope, but resulting profits are lower than under the status quo. We also show that strategic firm integration can occur even in the presence of diseconomies of scope. The model helps to explain features of recent mergers and acquisitions experience.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 232
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title A model of conglomeration and synergy traps
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2017-07-23T02:03:11Z
dc.subject.keyword conglomerate
dc.subject.keyword integration
dc.subject.keyword synergy
dc.subject.keyword strategy
dc.subject.keyword Finance and Accounting
dc.rights.accessRights info:eu-repo/semantics/openAccess

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