IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00203652.html
   My bibliography  Save this paper

Vertical structure of the industry and competition: an analysis of the info-communications industry

Author

Listed:
  • Jackie Krafft

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique)

Abstract

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.

Suggested Citation

  • Jackie Krafft, 2003. "Vertical structure of the industry and competition: an analysis of the info-communications industry," Post-Print hal-00203652, HAL.
  • Handle: RePEc:hal:journl:hal-00203652
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00203652
    as

    Download full text from publisher

    File URL: https://hal.archives-ouvertes.fr/hal-00203652/document
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. David J. Teece, 2008. "Firm organization, industrial structure, and technological innovation," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 11, pages 265-296 World Scientific Publishing Co. Pte. Ltd..
    4. Pierre-Jean Benghozi & Petros Kavassalis & R.J. Solomon, 1996. "The Internet : a Paradigmatic Rupture in Cumulative Telecom Evolution," Post-Print hal-00262937, HAL.
    5. 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.
    6. Foss, Nicolai J. (ed.), 1997. "Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective," OUP Catalogue, Oxford University Press, number 9780198781790.
    7. Gong, Jiong & Srinagesh, Padmanabhan, 1996. "Network Competition and Industry Structure," Industrial and Corporate Change, Oxford University Press, vol. 5(4), pages 1231-1241.
    8. G. B. Richardson, 1998. "The Economics of Imperfect Knowledge," Books, Edward Elgar Publishing, number 1524.
    9. 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.
    10. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dan Huang & Luxun Liu, 2014. "Micro-determinants of vertical integration: Evidence from China," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 377-396, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.