EconPapers: Vertical Integration and different Inputs

M.E. Porter and A. Spence

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: Vertical integration decisions, which determine the boundries of the firm, are among the largest decisions firms make and can have a major influence on firm success. In some cases the failure to integrate can result in the inability to obtain the desired inputs at reasonable prices. In other instances, an integrated firm may be severely affected by economic fluctuations due to overhead that the unintegrated firms do not bear. Research on vertical integration has stressed the balance between the inflexibility of integration and the cost reduction and / or potential increase in market power that integration may allow.

Pages: 40 pages
Date: 1977
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Citations: View citations in EconPapers (2)

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https://warwick.ac.uk/fac/soc/economics/research/w ... 68-1977/twerp120.pdf

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Working Paper: VERTICAL INTEGRATION AND DIFFERENT INPUTS (1977)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:120

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