VERTICAL INTEGRATION AND TECHNOLOGY: THEORY AND EVIDENCE

Vertical Integration and Technology: Theory and Evidence

This paper investigates the determinants of vertical integration and confronts some of the predictions of the leading approach to the internal organization of the firm with data from the UK manufacturing sector. Consistent with the theory, it shows that an upsteam and downstream activity pair are more likely to be vertically integrated, when the downstream (the producer) is more technology inte...

Production Technology, Information Technology, and Vertical Integration under Asymmetric Information

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Vertical Integration and Firm Boundaries: The Evidence

The U-shaped relationship between vertical integration and competition: theory and evidence

This paper considers how competition can affect aggregate innovative activity through its effects on firms’ decision whether or not to vertically integrate. A moderate increase in competition enhances innovation incentives, too much competition discourages innovative effort. These effects generates an inverted-U relationship between competition and innovation and between competition and the inc...

U-shaped relationship between vertical integration and competition: Theory and evidence

This paper considers how competition can affect aggregate innovative activity through its effects on firms’ decision whether or not to vertically integrate. A moderate increase in competition enhances innovation incentives and too much competition discourages innovative effort. These effects generate an inverted-U relationship between competition and innovation and between competition and the i...