Economies of scope and the scope of the enterprise Export

@article{citeulike:6055183, abstract = {This paper examines elements of an efficiency-based theory of the multiproduct firm. The theoretical framework developed by Williamson to explain vertical integration is extended to explain diversification. The proposition is advanced that a cost function displaying economies of scope has no direct implications for the scope of the business enterprise. However, if economies of scope are based upon the common and recurrent use of proprietary knowhow or the common and recurrent use of a specialized and indivisible physical asset, then multiproduct enterprise (diversification) is an efficient way of organizing economic activity. These propositions are first developed in a general context and then examined in the context of diversification in the U.S. Petroleum industry.}, author = {Teece, D.}, citeulike-article-id = {6055183}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/0167-2681(80)90002-5}, citeulike-linkout-1 = {http://linkinghub.elsevier.com/retrieve/pii/0167-2681(80)90002-5}, doi = {10.1016/0167-2681(80)90002-5}, issn = {01672681}, journal = {Journal of Economic Behavior \& Organization}, keywords = {economies, enterprise, scope}, month = {September}, number = {3}, pages = {223--247}, posted-at = {2009-11-02 04:53:30}, priority = {3}, title = {Economies of scope and the scope of the enterprise}, url = {http://dx.doi.org/10.1016/0167-2681(80)90002-5}, volume = {1}, year = {1980} }

TY - JOUR ID - citeulike:6055183 L3 - citeulike-article-id:6055183 N2 - This paper examines elements of an efficiency-based theory of the multiproduct firm. The theoretical framework developed by Williamson to explain vertical integration is extended to explain diversification. The proposition is advanced that a cost function displaying economies of scope has no direct implications for the scope of the business enterprise. However, if economies of scope are based upon the common and recurrent use of proprietary knowhow or the common and recurrent use of a specialized and indivisible physical asset, then multiproduct enterprise (diversification) is an efficient way of organizing economic activity. These propositions are first developed in a general context and then examined in the context of diversification in the U.S. Petroleum industry. IS - 3 JF - Journal of Economic Behavior & Organization SN - 01672681 EP - 247 TI - Economies of scope and the scope of the enterprise VL - 1 SP - 223 KW - economies KW - enterprise KW - scope AU - Teece, D PY - 1980/09// UR - http://dx.doi.org/10.1016/0167-2681(80)90002-5 ER -