search query: @author Minehart, D.E. / total: 1
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| Author: | Kranton, R.E. Minehart, D.E. |
| Title: | Networks versus vertical integration |
| Journal: | RAND Journal of Economics
2000 : AUTUMN, VOL. 31:3, p. 570-601 |
| Index terms: | MANUFACTURING INDUSTRY NETWORKS SUPPLIERS VERTICAL INTEGRATION |
| Language: | eng |
| Abstract: | The authors construct a theory to compare vertically integrated firms to networks of manufacturers and suppliers. Vetically integrated firms make their own specialized inputs. In networks, manufacturers procure specialized inputs from suppliers that, in turn, sell to several manufacturers. The analysis shows that networks can yield greater social welfare when manufacturers experience large idiosyncratic demand shocks. |
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