Too Many Products: Decentralized Decision Making in Multinational Firms
分析了西欧跨国洗衣粉制造商在不同国家的产品种类，发现各国产品种类差异超出最优水平，增加标准化可降低成本并提高利润，表明分散决策虽缺乏协调但可能是约束下的最优组织形式。
I analyze country-level product ranges offered by multinational laundry detergent manufacturers in Western Europe. Observed product range variation across countries exceeds the optimal firm-level response to differences in consumer preferences and retail environments. Counterfactual analysis reveals that increased product range standardization would reduce firm costs and increase profits. These findings are consistent with theory models of local agency, where decentralized decision making can be the constrained optimal organizational form despite the resulting lack of coordination across divisions. My analysis suggests that organizational structure affects product market outcomes and firm performance.