Networks and firm location
This paper models the decision of vertically-linked firms to build either partitioned or connected networks of supply of an intermediate good. In each case, the locations of upstream and downstream firms are correlated. Input specificity is related both to variable costs (transport costs of the input) and fixed costs (learning costs of the use of the input). When both are low, a connected network emerges and a partitioned pattern arises in the opposite case. In the boundary region, there are multiple equilibria, either asymmetric (mixed network) or symmetric.
(This abstract was borrowed from another version of this item.)
Volume (Year): 41 (2007)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: http://link.springer.de/link/service/journals/00168/index.htm|
More information through EDIRC
|Order Information:||Web: http://link.springer.de/orders.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jose Pedro Pontes, 2005. "Input Specificity and Location," Working Papers Department of Economics 2005/01, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Williamson, Oliver E, 1981. "The Modern Corporation: Origins, Evolution, Attributes," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1537-68, December.
- Choi, J.P. & Yi, S.S., 1997.
"Vertical Foreclosure with the Choice of Input Specifications,"
1997-16, Tilburg University, Center for Economic Research.
- Jay Pil Choi & Sang-Seung Yi, 2000. "Vertical Foreclosure with the Choice of Input Specifications," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 717-743, Winter.
- George Norman & Jacques-François Thisse, 1998.
"Technology Choice and Market Structure: Strategic Aspects of Flexible Manufacturing,"
Discussion Papers Series, Department of Economics, Tufts University
9808, Department of Economics, Tufts University.
- Norman, George & Thisse, Jacques-Francois, 1999. "Technology Choice and Market Structure: Strategic Aspects of Flexible Manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 47(3), pages 345-72, September.
- NORMAN, George & THISSE, Jacques-FranÃ§ois, 1996. "Technology choice and market structure : strategic aspects of flexible manufacturing," CORE Discussion Papers 1996059, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Andrea Bonaccorsi & Paola Giuri, 2000.
"The long term evolution of vertically-related industries,"
LEM Papers Series
2000/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Bonaccorsi, Andrea & Giuri, Paola, 2001. "The long-term evolution of vertically-related industries," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1053-1083, July.
- Joskow, Paul L, 1987. "Contract Duration and Relationship-Specific Investments: Empirical Evidence from Coal Markets," American Economic Review, American Economic Association, vol. 77(1), pages 168-85, March.
- BELLEFLAMME, Paul & TOULEMONDE, Eric, .
"Product differentiation in successive vertical oligopolies,"
CORE Discussion Papers RP
1720, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Paul Belleflamme & Eric Toulemonde, 2003. "Product differentiation in successive vertical oligopolies," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 523-545, August.
- Paul Belleflamme & Eric Toulemonde, 2000. "Product Differentiation in Successive Vertical Oligopolies," Working Papers 421, Queen Mary University of London, School of Economics and Finance.
- Rachel E. Kranton & Deborah F. Minehart, 2000. "Networks versus Vertical Integration," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 570-601, Autumn.
- Oliver Lorz & Matthias Wrede, 2008. "Standardization of intermediate goods and international trade," Canadian Journal of Economics, Canadian Economics Association, vol. 41(2), pages 517-536, May.
- Curtis Eaton, B. & Schmitt, N., 1991.
"Flexible Manufacturing and Market Structure,"
1991-02, Tasmania - Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:41:y:2007:i:4:p:897-909. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.