Purposive Diversification and Economic Performance

• Introduction: An overview; Part I. Static Efficiency and the Diversified Firm: 1. The multimarket firm; 2. Theories linking multimarket contact and market power; 3. Diversifying mergers and strategic congruence; 4. Multimarket contact and resource allocation; 5. The market power of diversifed oligopolists; Part II. Firm and Industry Effects Versus Traditional Models: 6. Profitability effects; 7. R & D intensity effects; Part III. Dynamic Efficiency and the Diversified Firm: 8. Theories linking diversification and the R & D investment; 9. Diversification of R & D and productivity; 10. Multimarket rivalry and R & D intensity; 11. Research diversity induced by rivalry; Part IV. Industrial Policy: 12. Diversification versus cooperation in R & D; 13. From cooperative research to cooperative production; 14. Damoclean taxation and innovation; Afterword: perspectives through time and across countries; Notes; References; Index.

'John Scott has produced an encompassing work on the incentives for diversification and its ramifications … The book is good. It is specific to the topic of purposive diversification. But within that topic, it is complete.' David I. Rosenbaum, Review of Industrial Organization