Zusammenfassung Gibt es in einem räumlichen Markt einzelwirtschaftliche und/oder gesamtwirtschaftliche, wohlfahrtstheoretische Anreize zur vertikalen Integration zweier Marktstufen in einer organisatorischen Einheit (Konzern)? Zur Beantwortung dieser Frage wird ein Modell vorgestellt, in dem...

Abstract We investigate whether vertical separation reduces quality discrimination and increases welfare. Consider an industry consisting of a vertically integrated firm, the incumbent, and an independent retailer, the entrant, which requires access to the services of the incumbent's wholesaler....

Abstract In antitrust practice, it is often argued that independent distributors of goods have an incentive to supply lower levels of brand-specific promotional services than a vertically integrated supplier. This paper outlines the conditions under which this claim is correct. Independent...

We examine vertical backward integration in a reduced-form 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...

This paper presents a novel explanation of the decision by a firm to make an input within the firm rather than to out-source the production to another firm. Due to the limited attention of the manager/entrepreneur, time spent overseeing production in-house has an opportunity cost: the neglect of...

This paper illustrates the effect of market size on the decision of whether or not firms should vertically integrate or disintegrate. We use a model of two successive stages of production with Cournot competition in each stage. In this model, firms choose to specialize (either upstream or...

The recent article in Capitalism and Society by Dosi et al., as well as the accompanying discussion by William Lazonick, misunderstand and mischaracterize the argument of my 2003 paper "The Vanishing Hand." More importantly, some of the central claims these articles make about the organization...

Standard economic intuition of revealed preference implies that when two parties freely enter into a contract then neither should be worse off. In this study, we develop a simple model showing that introducing the opportunity to contract can lower welfare for some, and perhaps all, contracting...

Abstract This article reports on the results of a case study that examines the characteristics of the transaction between a plastic producer firm and its supplier of steel injection mold in order to explore the possible effects of asset specificity on the firm�s choice of the transaction...

Abstract We consider an industry where an upstream firm determines the size of a network used by two downstream firms. We contrast ownership unbundling and legal unbundling, where the upstream firm maximizes its total profit, including the profit of its downstream subsidiary(ies), but does not...