Where legal systems and market forces enforce contracts inadequately, vertical integration can circumvent these transaction difficulties. But, such environments often also feature highly interventionist government, and even corruption. Vertical integration might then enhance returns to political...

Where legal systems and market forces enforce contracts inadequately, vertical integration can circumvent these transaction difficulties. But, such environments often also feature highly interventionist government, and even corruption. Vertical integration might then enhance returns to political...

Input transactions in the petrochemical industry are often subject to temporal specificity. That is, non-performance in quantity, such as delaying delivery, is highly costly to producers and can be an effective holdup strategy. In the 1970s, two oil price shocks induced high price volatility in...