Term:
Specialisation agreements
Definition:
Specialization agreements is a provision permitting firms to form an agreement to specialize in the production of a narrow or specific range of product lines in order to realize "product specific economies". In several industries, firms may be manufacturing at sub-optimal scales, multiple and duplicate products.
Domain:
Finance
Source:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993