Economies of Scope¶
Panzar, J. C., & Willig, R. D. (1981). Economies of Scope. American Economic Review, 71(2), 268-272.
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Primes¶
- Economies Of Scope
- The economy comes from breadth, the diversity of things served by one substrate, rather than from volume of any single output, a distinction first set out formally by Panzar and Willig (1981) when they defined scope economies as the cost saving from joint production relative to stand-alone production of the same outputs.
This sourceIntroduces and formally defines economies of scope as the cost saving from joint production relative to stand-alone production, locating their source in the sharing of fixed, quasi-public (non-rival) inputs across outputs and bounding the range over which sharing pays
- The economy comes from breadth, the diversity of things served by one substrate, rather than from volume of any single output, a distinction first set out formally by Panzar and Willig (1981) when they defined scope economies as the cost saving from joint production relative to stand-alone production of the same outputs.
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