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Communication in Vertical Markets : Experimental Evidence

Möllers, Claudia - 2016

-known commitment problem by introducing communication. Allowing the upstream firm to chat privately with each downstream firm reduces … total offered quantity from near the Cournot level (observed in the absence of communication) halfway toward the monopoly … bargaining advantage from open communication that all of the gains from monopolizing the market accrue to them. A simple …

Persistent link: https://www.econbiz.de/10012992661

Does Multispecialty Practice Enhance Physician Market Power?

Baker, Laurence Claude - 2017

In markets for health services, vertical integration – common ownership of producers of complementary services – may have both pro- and anti-competitive effects. Despite this, no empirical research has examined the consequences of multispecialty physician practice – a common and increasing...

Persistent link: https://www.econbiz.de/10012946495

Come Together : Firm Boundaries and Delegation

Alfaro, Laura - 2018

We develop an incomplete-contracts model to jointly study firm boundaries and the al-location of decision rights within them. Integration has an option value: it gives firm owners authority to delegate or centralize decision rights, depending on who can best solve problems that may arise in the...

Persistent link: https://www.econbiz.de/10012919310

Organizing Global Supply Chains : Input Cost Shares and Vertical Integration

Berlingieri, Giuseppe - 2018

We study how the technological importance of inputs – measured by cost shares – is related to the decision to “make” or “buy” that input. Using detailed French international trade data and an instrumental variable approach based on self-constructed input-output tables, we show that...

Persistent link: https://www.econbiz.de/10012907454

Vertical Integration and Technology : Theory and Evidence

Acemoglu, Daron; Aghion, Philippe; Griffith, Rachel; … - 2021

This paper investigates the determinants of vertical integration using data from the UK manufacturing sector. We find that the relationship between a downstream (producer) industry and an upstream (supplier) industry is more likely to be vertically integrated when the producing industry is more...

Persistent link: https://www.econbiz.de/10013218968

United States Steel'S Acquisition of the Great Northern Ore Properties : Vertical Foreclosure or Efficient Contractual Governance?

Mullin, Joseph C.; Mullin, Wallace P. - 2021

This paper examines United States Steel's acquisition by long-term lease of the iron ore properties of the Great Northern Railway. This 1906 transaction, which significantly increased U.S. Steel's already substantial ore holdings, has been characterized by contemporary observers and modern...

Persistent link: https://www.econbiz.de/10013222626

Strategic Trade Policy When Domestic Firms Compete Against Vertically Integrated Rivals

Rodrik, Dani; Yun, Chang-Ho - 2021

This paper models the international competition between a domestic firm and its vertically integrated foreign rival. The domestic firm has the choice of developing its own production capability for an intermediate input, or of importing it from the foreign firm at a price set by the latter. In...

Persistent link: https://www.econbiz.de/10013222922

Localization Economies, Vertical Organization and Trade

Hanson, Gordon H. - 2021

This paper develops a model of regional production networks based on localization economies. I consider an industry with two activities: one with location-specific external economies, the other with constant returns. Under autarky, localization economies imply the formation of an industry...

Persistent link: https://www.econbiz.de/10013222969

Incomplete Contracts and Industrial Organization

Grossman, Gene M.; Helpman, Elhanan - 2021

We develop an equilibrium model of industrial structure in which the organization of firms is endogenous. Differentiated consumer products can be produced either by vertically integrated firms or by pairs of specialized companies. Production of each variety of consumer good requires a unique,...

Persistent link: https://www.econbiz.de/10013223318

The Effects of Capacity on Sales Under Alternative Vertical Contracts

Ioannou, Ioannis; Mortimer, Julie Holland; Mortimer, Richard - 2021

Retailer capacity decisions can impact sales for products by affecting, for example, availability and visibility. Using data from the U.S. video rental industry, we report estimates of the effect of capacity on sales. New monitoring technologies facilitated new supply contracts in this industry,...

Persistent link: https://www.econbiz.de/10013225030