The vertical organization of production entails a range of make-or-buy decisions of intermediate goods that are influenced by the difficulty of writing contracts with a potential supplier. When contracting causes high transaction costs, a firm can decide to vertically integrate the production of...

Finn Wynstra is professor by special appointment in Purchasing and Supply Management at RSM Erasmus University, on behalf of the Dutch Association for Purchasing Management (NEVI) and the 'Vereniging Trustfonds EUR'. He studied Economics at Erasmus University Rotterdam, and conducted his PhD...