search query: @author Lieberman, M. B. / total: 11
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| Author: | Lieberman, M. B. |
| Title: | Determinants of vertical integration: an empirical test |
| Journal: | Journal of Industrial Economics
1991 : SEP, VOL. 39:5, p. 451-466 |
| Index terms: | VERTICAL INTEGRATION COMPANY GROWTH USA CHEMICAL INDUSTRY COSTS MARKET STRUCTURE |
| Language: | eng |
| Abstract: | The results of a recent study indicate that both transaction costs and demand variability can create incentives for vertical integration. The transaction cost and demand variability theories are summarized. They are also used to derive seven testable hypotheses. The empirical tests strongly support three of these hypotheses. The data sample covers USA producers of 34 chemical products. Logit analysis is used to assess the probability of integration as a function of sunk costs, market concentration and demand variability. The results are consistent with recent transaction cost theories and the demand variability model proposed by Carlton (1979). |
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