A Unified Theory of Market Partitioning: An Integration of Resource-Partitioning and Sunk Cost Theories

Topics:
Competitive Strategy,
Research
Tags:
Integration,
Theory,
University Of Groningen
Source:
University of Groningen

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Overview: This paper's objective is to integrate sociology's and economics' theories of market partitioning into a unifying framework: Glenn Carroll's resource-partitioning and John Sutton's sunk cost theories, respectively. In so doing, two important theory fragments from organizational ecology and industrial organization are integrated in an attempt to understand the antecedents and consequences of so-called dual market structures. A dual market structure features high concentration and high density, two market structure conditions that in most extant theory are thought to be unrelated. The authors' argue that theory fragments are highly complementary, offering different stories about the evolution of competition that produce similar market structure outcomes.

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Format: PDF | Size: 262KB | Date: Jun 2003 | Pages: 32

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