Economies of scope occur when firms achieve cost savings by increas- ing the variety of goods and services that they produce (joint produc- tion). Such effects arise when it is possible to share components and to use the same facilities and personnel to produce several products. For example, a bank may sell retail insurance products in its local branches in order to spread the fixed costs (like the office rent) over a larger number of products.

Source: Glossary of terms used in EU competition policy, Antitrust and control of concentrations, European Commission, 2002