Rawley, Evan; Simcoe, Timothy S. - In: Management Science 56 (2010) 9, pp. 1534-1550
This paper studies how firms reorganize following diversification, proposing that firms use outsourcing, or vertical … following diversification. We test these propositions using microdata on taxicab and limousine fleets from the Economic Census … use outsourcing to manage diseconomies of scope at a particular point in the value chain and (2) interagent conflicts can …