Vertical structure of the industry and competition: an analysis of the info-communications industry
The 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.
|Date of creation:||2003|
|Publication status:||Published in Telecommunications Policy, Elsevier, 2003, 27 (8-9), pp.625-649|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00203652|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
- Perry, Martin K., 1989. "Vertical integration: Determinants and effects," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 4, pages 183-255 Elsevier.
- Pierre-Jean Benghozi & Petros Kavassalis & R.J. Solomon, 1996. "The Internet : a Paradigmatic Rupture in Cumulative Telecom Evolution," Post-Print hal-00262937, HAL.
- Gong, Jiong & Srinagesh, Padmanabhan, 1996. "Network Competition and Industry Structure," Industrial and Corporate Change, Oxford University Press, vol. 5(4), pages 1231-1241.
- Kavassalis, Petros & Solomon, Richard Jay & Benghozi, Pierre-Jean, 1996. "The Internet: A Paradigmatic Rupture in Cumulative Telecom Evolution," Industrial and Corporate Change, Oxford University Press, vol. 5(4), pages 1097-1126.
- Foss, Nicolai J. (ed.), 1997. "Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective," OUP Catalogue, Oxford University Press, number 9780198781790, December.
- Martin Fransman, 2001. "Analysing The Evolution Of Industry: The Relevance Of The Telecommunications Industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(2-3), pages 109-140.
- Teece, David J., 1996. "Firm organization, industrial structure, and technological innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 31(2), pages 193-224, November.
- G. B. Richardson, 1998. "The Economics of Imperfect Knowledge," Books, Edward Elgar Publishing, number 1524.
- Mahler, Alwin & Rogers, Everett M., 1999. "The diffusion of interactive communication innovations and the critical mass: the adoption of telecommunications services by German banks," Telecommunications Policy, Elsevier, vol. 23(10-11), pages 719-740, November.
- Katz, Michael L., 1989. "Vertical contractual relations," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 11, pages 655-721 Elsevier.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00203652. 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: (CCSD)
If references are entirely missing, you can add them using this form.