Vertical structure of the industry and competition: an analysis of the info-communications industry
AbstractThe purpose of this paper is threefold. First, the paper provides a synthesis of the potentialities and limits of the dominant economic literature on vertical contractual relations which essentially focuses on the impact of vertical specialization and vertical integration on competition and customers' welfare. Second, the paper proposes a characterization of the different degrees of vertical specialization and vertical integration for key actors in the info-communications industry: equipment suppliers, telcos, ISPs/IAPs, navigation and software/middleware companies, information and content companies. Thirdly, the paper acknowledges a confrontation between, on the one hand, optimal vertical structures exhibited in dominant economic models and, on the other hand, observed vertical structures in the info-communications industry. From this confrontation emerges an important gap between theoretical results and observable trends. The outcome of this paper is thus that the dynamics between vertical relationships and competition requires a new research agenda, especially for researchers concerned with the evolution of the info-communications industry.
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Bibliographic InfoPaper provided by HAL in its series Post-Print with number hal-00203652.
Date of creation: 2003
Date of revision:
Publication status: Published, Telecommunications Policy, 2003, 27, 8-9, 625-649
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00203652/en/
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