Petri Böckerman, Liisa T. Laine, Mikko Nurminen and Tanja Saxell Böckerman is a Professor at University of Jyväskylä, Research Economist Labour Institute for Economic Research, Fellow IZA Labor Economics. Laine an Assistant Missouri (lainel{at}missouri.edu). Senior Researcher the Social Insurance Institution Finland. VATT Helsinki GSE.

Vertical integration, also known as make-or-buy, defines whether activities are conducted by company or provided external parties. There different models to support decision making for vertical integration in the literature. However, they ignore uncertainty aspect of integration. As a strategic decision, is multidimensional and less frequent. This study contributes new data-driven model that in...