Multidimensional Signalling and Diversification
构建模型，解释企业为何通过多元化向竞争对手传递自身成本和市场需求的私有信息，从而获得竞争优势。
This article offers a new explanation of why firms diversify. I present a model in which a firm has private information about both its own cost and the demand function of the market on which it competes with another firm. I show that diversification can be used by the informed firm to signal private information in order to obtain competitive advantages. This provides an important motive for a firm to diversify. The signalling explanation of diversification is consistent with some empirical observations. A phenomenon called natural signalling is also studied in the model where both signals and private information are multidimensional.