Economies of scope and the scope of the enterprise¶
Teece, D. J. (1980). Economies of scope and the scope of the enterprise. Journal of Economic Behavior & Organization, 1(3), 223-247.
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Primes¶
- Economies Of Scope
- The pattern answers a recurring question that appears wherever a fixed base can be put to several purposes: when is it cheaper to do many different things off one foundation than to build a separate foundation for each, and what determines the point at which sharing stops paying?
This sourceGrounds scope economies in the common, recurrent use of an indivisible specialized asset or proprietary know-how, distinguishing genuine substrate sharing from mere co-location and explaining when shared-base structures (multi-product firms, shared services, platforms) are warranted.
- The pattern answers a recurring question that appears wherever a fixed base can be put to several purposes: when is it cheaper to do many different things off one foundation than to build a separate foundation for each, and what determines the point at which sharing stops paying?
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