The sub-contracting of land transport is the governmental structure most used by Spanish transport firms. This model is the result of a vertical disintegration process that entails selling vehicles and reassigning tasks within or outside the business. Institutional reforms that regulate...

Asymmetric information in procurement entails double marginalization. The phenomenon is most severe when the buyer has all the bargaining power at the production stage, while it vanishes when the buyer and suppliers’ weights are balanced. Vertical integration eliminates double marginalization...

Asymmetric information in procurement entails double marginalization. The phenomenon is most severe when the buyer has all the bargaining power at the production stage, while it vanishes when the buyer and suppliers' weights are balanced. Vertical integration eliminates double marginalization...

Firms vertically integrate to avoid dependence on external providers/clients. At the same time, vertical integration offers the possibility to exploit existing capabilities among similar stages and pursue flexibility. This article attempts to analyze how firm size affects these vertical...