Showing 1 - 10 of 357
To comply with laws, regulations and social demands, polluting firms increasingly purchase the needed means from specialized suppliers. This paper analyzes this relatively recent phenomenon. We show how environmental regulation, the size of the output market, the elasticity of demand for...
Persistent link: https://www.econbiz.de/10008747660
relationship between technology intensity and vertical integration from a simple model with nancial imperfections andincomplete … consistent with theory, we find that the technology intensities of downstream (producer) and upstream(supplier) industries have … with alternative measures of technology intensity, with alternative estimation strategies, and with or without controlling …
Persistent link: https://www.econbiz.de/10005857773
This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good to an imperfectly competitive input market. We apply the taxonomy of business strategies introduced by Fudenberg and Tirole (1984) to characterize the different equilibria. We...
Persistent link: https://www.econbiz.de/10001783571
We explore the nature of Business Groups, that is network-like forms of hierarchical organization between legally autonomous firms spanning both within and across national borders. Exploiting a unique dataset of 270,474 headquarters controlling more than 1,500,000 (domestic and foreign)...
Persistent link: https://www.econbiz.de/10009737190
investment in manufacturing. It examines in particular the role played by logistics infrastructure and processes in the selection … by investors of particular locations for investment in manufacturing. The paper also lists out other shortcomings in the … domestic investment environment that have made India less attractive for foreign as well as domestic investors in comparison …
Persistent link: https://www.econbiz.de/10010404655
We propose a stylized model of a problem-solving organization whose internal communication structure is given by a fixed network. Problems arrive randomly anywhere in this network and must find their way to their respective specialized solvers by relying on local information alone. The...
Persistent link: https://www.econbiz.de/10011603091
There are more and more industries in which firms are specialized in the production of a component of the final good. This is especially true in high-tech industries. The basic question is why don't these firms merge? We paradoxically show that industries which are typical candidates for...
Persistent link: https://www.econbiz.de/10011596910
The industrial organization of developing countries is characterized by the pervasive use of subcontracting arrangements among small, financially constrained firms. This paper asks whether vertical integration relaxes those financial constraints. It shows that vertical integration trades off the...
Persistent link: https://www.econbiz.de/10008823904
We examine the interplay of endogenous vertical integration and costreducing downstream investment in successive …, we establish the following main results: First, vertical integration increases own investment and decreases competitor … investment (intimidation effect). Second, asymmetric equilibria typically involve integrated firms that invest more into …
Persistent link: https://www.econbiz.de/10002202366
We examine vertical backward integration in a reducedform model of successive oligopolies. Our key findings are: (i) There may be asymmetric equilibria where some firms integrate and others remain separated, even if firms are symmetric initially; (ii) Efficient firms are more likely to integrate...
Persistent link: https://www.econbiz.de/10001783575