haku: @indexterm VERTICAL INTEGRATION / yhteensä: 190
viite: 32 / 190
| Tekijä: | Heavner, D.L. |
| Otsikko: | Vertical enclosure: vertical integration and the reluctance to purchase from a competitor |
| Lehti: | Journal of Industrial Economics
2004 : JUN, VOL. 52:2, p. 179-199 |
| Asiasana: | Competition Vertical integration |
| Kieli: | eng |
| Tiivistelmä: | Vertical integration can reduce integrating companies' trading opportunities and, contrary to predictions of two-company models, this loss of trade can make integration unprofitable. If downstream units must commit to suppliers before contracting on the final terms of trade, then suppliers will have ex-post monopoly power. This monopoly power reduces the quality that an integrated supplier will provide to its competitors. Expectations of this quality reduction can prevent companies from purchasing from an integrated supplier even though the supplier would be better off if it could commit to provide its downstream competitors with sufficient quality to retain their businesses. |
SCIMA