search query: @author Murphy, K. M. / total: 3
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| Author: | Klein, B. Murphy, K. M. |
| Title: | Vertical integration as a self-enforcing contractual arrangement |
| Journal: | American Economic Review
1997 : MAY, VOL. 87:2, p. 415-420 |
| Index terms: | VERTICAL INTEGRATION CONTRACTS COMPANIES MOTIVATION |
| Language: | eng |
| Abstract: | A wave of large vertical mergers presents a challenge to established theories of vertical integration. The large mergers that have occurred in the pharmaceutical industry between drug manufacturers and companies managing drug insurance benefits and in the entertainment industry between network distributors and program suppliers do not fit traditional economic theories of vertical integration. This paper presents an analysis of vertical integration that combines and extends the work on self-enforcing contracts with earlier work on vertical integration to avoid holdups, to illuminate the economic motivation for these recent vertical mergers. |
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