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A network/search view of international trade in differentiated products is proposed. It is shown that this view can explain the importance of ethnic and extended family ties in trade, the success of diversified trading intermediaries such as Japan's sogo shosha, and the ubiquity of government...
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The past twenty years have witnessed the emergence of internet conglomerates fueled by acquisitions. We provide a simple theoretical model to shed some light on this. Following a large literature in management (Wernerfelt, 1984) we endow firms with a set of scarce competencies which drive their...
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the choice of standalone banks. Loan sales in conglomerates avoid information asymmetry, which enables conglomerate banks …, conglomerate banks may be safer than standalone banks due to higher monitoring incentives. The model speaks to Vickers proposal of … the UK structural reform showing that higher bank capital requirements alone may not offet conglomerate banks' risk …
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