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Too Big

  • Li Way Lee
Chapter

Abstract

As managers pursue market share, they find that the boundaries of their markets keep expanding at the same time. They see in The Magic Mirror that they can approach, but never reach, 100% market share. This is the reason why their appetite for growth is insatiable and why their firms become too big. In this chapter, I demonstrate their relentless pursuit of size. I show that managers prefer buying capacity (through mergers and acquisitions) to making capacity (through internal growth). Either way, their firms become big.

Keywords

Empire building Make growth Buy growth Limit to growth 

References

  1. Hughes, Chris. 2019. It’s Time to Break Up Facebook. New York Times, May 9.Google Scholar
  2. Simon, Herbert. 1982. Behavioral Economics and Business Organization. Volume 2 of Models of Bounded Rationality. Cambridge, MA: The MIT Press.Google Scholar
  3. Wu, Tim. 2018. The Curse of Bigness: Antitrust in the New Gilded Ag. New York, NY: Columbia Global Reports.Google Scholar
  4. Wu, Tim, and Stuart A. Thompson. 2019. The Roots of Big Tech Run Disturbingly Deep. New York Times, June 7.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Li Way Lee
    • 1
  1. 1.Department of EconomicsWayne State UniversityDetroitUSA

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