Many firms have different branches within a single firm. These branches also compete between themselves. For simplicity, the case where the firm itself is a monopolist is considered. Given that its branches competes between themselves on a variable (e.g. quality of service) on which the centre...

This paper studies the effects of intra-firm branch competition in a monopoly setting. It demonstrates that intra-firm branch competition has a significant impact on the firm's market decisions, and consequently on the market outcome. The paper has identified the sufficient conditions under...