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The main aim of the paper is to highlight the relation between flexibility and vertical integration. To this purpose, we go through the selection of the optimal degree of vertical disintegration of a flexible firm which operates in a dynamic uncertain environment. The enterprise we model enjoys...
Persistent link: https://www.econbiz.de/10005423238
affinities with conventional profit maximizing firms. To prove this, we compare the entry policies of WEs and conventional firms … when they can decide size at entry while having to stick to it afterwards. Even though short run differences remain, a long … run coincidence appears besides that under certainty. Endogenizing size and time of entry in an uncertain dynamic …
Persistent link: https://www.econbiz.de/10005392537