The economic advantages of chain organization

• 成果类型: Article
• 署名作者: Hollenbeck, Brett
• 署名单位: University of California System; University of California Los Angeles
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12214
• 发表日期: 2017
• 页码: 1103-1135
• 关键词: wal-mart; entry; models; reputation; MARKETS

摘要

This article considers the rapid spread of chain firms in many industries. The conventional explanation is that chains generate economies of scale in costs. Alternatively, the structure of chains may enhance demand by helping firms develop reputations, among other reasons. I quantify the value of these explanations empirically with a large, detailed data set on the hotel industry, combining a reduced-form analysis of revenues with a structural estimation of firm costs. Revenue analysis shows substantial evidence of a large chain premium. Cost estimation shows that after accounting for unobserved heterogeneity, chain-affiliated firms receive no cost advantage relative to independent firms.