search query: @author Kerkvliet, J. / total: 2
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| Author: | Kerkvliet, J. |
| Title: | Efficiency and vertical integration: the case of mine-mouth electric generating plants |
| Journal: | Journal of Industrial Economics
1991 : SEP, VOL. 39:5, p. 467-482 |
| Index terms: | VERTICAL INTEGRATION COMPANY GROWTH ELECTRICITY INDUSTRY INVESTMENTS ORGANIZATIONAL BEHAVIOUR |
| Language: | eng |
| Abstract: | Four propositions are tested regarding the efficiency of vertical arrangements. 1. Vertically integrated and non-integrated firms allocate inputs with equal efficiency and 2. achieve equal technical efficiency. 3. Upstream transaction-specific investments provide monopsony power and 4. monopsony behaviour does not differ by vertical arrangements. A behavioural cost function for mine-mouth generating plants is estimated. The findings include significant differences in the allocative efficiency of integrated vs. non-integrated plants and increased technical efficiency for vertically integrated plants. Transaction-specific investments in mines provide monopsony power. Non-integrated plants exercise this power, integrated plants do not. |
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