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Pennsylvania State University *

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Economics

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Nov 24, 2024

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Even though firms in a fragmented market don't have the same control over the market as firms in an oligopolistic market, through the use of franchising they can still obtain some of the same benefits as oligopolistic firms, which is how franchising can aid companies in fragmented markets. These issues are not inherent in oligopolistic markets because oligopolistic markets are consolidated and by definition are larger organizations that have economies of scale. References: Brown, R. S. (2015). Franchising as a Collective Action Mechanism in Fragmented Industry Structures: JMI. Journal of Managerial Issues, 27 (1-4), 63-83,6. https://ezaccess.libraries.psu.edu/login?url=https://www.proquest.c om/scholarly-journals/franchising-as-collective-action-mechanism/docview/ 1756232156/se-2 Links to an external site.
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