While focused on firm growth in general, Penrose (1959) stresses that the experiential knowledge of a firm's management is positively related to the rate of firm growth because such firms are better able to identify and exploit "productive opportunities." We suggest that internationally experienced firms are more likely to reap the benefits of rapid internationalization while being less likely to suffer from the diseconomies
of time compression when rapidly internationalizing.
Even if only this kind of restriction will be implemented, it will go a long way in enhancing environmental conditions and mitigating the diseconomies
of scale that we are currently suffering in the metropolis.
Stimpert and Laux (2011) reported that while costs decline and profitability increases as bank size increases, these relationships do not hold indefinitely and diseconomies
of scale are experienced by larger banks.
* In the case of large economies of scope [[theta]'(.)[member of]([infinity], [[rho].sub.i])] and large diseconomies
of scope [[theta](.) [member of] ([[rho].sub.2], + [infinity])], an increase in the fraction of reserve requirements is followed by an increase in the equilibrium amounts and in the interest rate of deposits.
Economies of scale that produce efficiency eventually get overtaken by diseconomies
of relationship that steal energy, innovation and commitment.
Instead of observing economies of scale, Wallsten finds diseconomies
of scale: overhead expenses increase with firm size.
Indeed, in the largest jurisdictions, efficiencies have likely been exceeded--that is, some consolidation has produced diseconomies
of scale that reduce efficiency.
Bresnahan, Stanford University and NBER; Shane Greenstein, Northwestern University and NBER; and Rebecca Henderson, Harvard University and NBER, "Schumpeterian Competition and Diseconomies
of Scope; Illustrations from the Histories of Microsoft and IBM"
This suggests that there are neither economies nor diseconomies
of scale in municipal government expenditures.
It is clear from regional history, that a small country can be a leading world producer of products such as, sugar, bananas, bauxite/alumina, limes, but with competition, changing demand, innovation, and diseconomies
of scale, that position is easily eroded.
They added: "While fashion retailers can experience economies of scale with regards to fabrics and shipping costs, we can now also see material risk of diseconomies
of scale, stemming from the complexity of scaling the buying and merchandising process.