search query: @author Grossman, S. J. / total: 14
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| Author: | Grossman, S. J. Hart, O. D. |
| Title: | The cost and benefits of ownership : a theory of vertical and lateral integration. |
| Journal: | Journal of Political Economy
1986 : AUG, VOL. 94:4, p. 691-719 |
| Index terms: | COMPANY OWNERSHIP VERTICAL INTEGRATION |
| Language: | eng |
| Abstract: | The theory of costly contracts emphasized that contractual rights can be of two types: specific rights and residual rights. When it is costly to list all specific rights over assets in the contract,it may be optimal to let one party purchase all residual rights. Ownership is the purchase of these residual rights. The integration is defined in terms of the ownership of assets and the model developed explains when a firm will desire to acquire the assets of another one. If one party gets rights of control,than this diminishes the rights of the other party to have control. |
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