search query: @indexterm Strategic management / total: 1889
reference: 210 / 1889
Author: | Jansen, J. |
Title: | Coexistence of strategic vertical separation and integration |
Journal: | International Journal of Industrial Organization
2003 : MAY, VOL. 21:5, p. 699-716 |
Index terms: | Oligopoly Contracts Costs Strategic management |
Language: | eng |
Abstract: | The author gives conditions under which vertical separation is chosen by some upstream firms, while vertical integration is chosen by others in the equilibrium of a symmetric model. A vertically separating firm trades off fixed contracting costs against the strategic benefit of writing a contract with its retailer. Coexistence emerges when more than two vertical Cournot oligopolists supply close substitutes. Coexistence emerges when more than two vertical Cournot oligopolists supply close substitutes. When vertical integration and separation coexist, welfare could be improved by reducing the number of vertically separating firms. |
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