INFORMATION AND ORGANIZATION FOR HORIZONTAL MULTIMARKET COORDINATION

We model the effects of alternative coordination structures on the per formance of a firm that faces uncertain demand in multiple horizontal markets. The firm's coordination structure is jointly determined by it s decision-rights structure and by its information structure. We compa re the performance of decentralized, centralized and distributed struc tures and study factors that affect the value of coordination. The res ults quantify and illustrate the value of co-locating decision rights with specific knowledge.