Upstream-Downstream Specialization by Integrated Firms in a Partially Integrated Industry
AbstractWe propose a simple model of a partially integrated industry which explicitely takes into account persistant production cost differences across upstream firms, such as one might observe in natural resource industries. The model allows us to highlight the respective roles of strategic considerations and of cost considerations in the determination of an integrated firm'interaction with the non-integrated sector of the industry and, in the end, on its relative upstream- downstream specialization. Stylized facts from the oil industry are used to illustrate the type of behaviour one might expect in this context.
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Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 14 (1999)
Issue (Month): 4 (June)
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Web page: http://www.springerlink.com/link.asp?id=100336
Oligopoly; vertical integration; specialization; oil industry;
Other versions of this item:
- Gaudet, Gerard & Long, Ngo Van & Soubeyran, Antoine, 1996. "Upstream-Downstream Specialization by Integrated Firms in a Partially Integrated Industry," Cahiers de recherche 9604, Université Laval - Département d'économique.
- Gaudet, G. & Long, N.V. & Soubeyran, A., 1996. "Upstream-Downstream Specialization by Integrated Firms in a Partially Integrated Industry," Papers 9604, Laval - Recherche en Politique Economique.
- Gérard Gaudet & Ngo Van Long & Antoine Soubeyran, 1996. "Upstream Downstream Specialization by Integrated Firms in a Partially Integrated Industry," CIRANO Working Papers 96s-08, CIRANO.
- Gaudet, G. & Van Long, N. & Soubeyran, A., 1996. "Upstream-Downstream Specialization by Integrated Firms in a Partially Integraded Industry," G.R.E.Q.A.M. 96b13, Universite Aix-Marseille III.
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L4 - Industrial Organization - - Antitrust Issues and Policies
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