Vertical Integration and Firm Boundaries: The Evidence
Abstract
Since Ronald H. Coase's (1937) seminal paper, a rich set of theories has been developed that deal with firm boundaries in vertical or input–output structures. In the last twenty-five years, empirical evidence that can shed light on those theories also has been accumulating. We review the findings of empirical studies that have addressed two main interrelated questions: First, what types of transactions are best brought within the firm and, second, what are the consequences of vertical integration decisions for economic outcomes such as prices, quantities, investment, and profits. Throughout, we highlight areas of potential cross-fertilization and promising areas for future work.Download Info
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Bibliographic Info
Article provided by American Economic Association in its journal Journal of Economic Literature.
Volume (Year): 45 (2007)
Issue (Month): 3 (September)
Pages: 629-685
Note: DOI: 10.1257/jel.45.3.629
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Related research
Keywords:Other versions of this item:
- Lafontaine, Francine & Slade, Margaret, 2007. "Vertical Integration and Firm Boundaries : The Evidence," The Warwick Economics Research Paper Series (TWERPS) 799, University of Warwick, Department of Economics.
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
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As found by EconAcademics.org, the blog aggregator for Economics research:- New Survey Paper on Vertical Integration
by Peter Klein in Organizations and Markets on 2007-09-21 20:27:28
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