A market-power based model of business groups

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" A market-power based model of business groups "
Feenstra, Robert C; Huang, D S

Document Type	:	AL
Record Number	:	918549
Doc. No	:	LA5fq521qg
Title & Author	:	A market-power based model of business groups [Article]\ Feenstra, Robert C; Huang, D S
Date	:	2003
Title of Periodical	:	UC Davis
Abstract	:	We propose an model of vertically and horizontally-integrated business groups that allows the number and size of each group to be determined endogenously. We find that more than one configuration of groups can arise in equilibrium: several different types of business groups can occur, each of which are consistent with profit-maximization and are stable. We suggest that the strongly-integrated groups arising in the model characterize the chaebol found in South Korea, whereas the less-integrated groups describe those found in Taiwan. (C) 2002 Elsevier Science B.V. All rights reserved.