This paper explores comparative cost structures when large firms split operations between separate production facilities in a way that puts pressure on wage rates and worker effort levels: one example of a 'divide and rule' strategy. It differentiates horizontal structures of this kind based on...

This paper explores comparative cost structures when large firms split operations between separate production facilities in a way that puts pressure on wage rates and worker effort levels: one example of a divide and rule strategy. It differentiates horizontal structures of this kind based on...