Profitability of Monopolization by Vertical Integration

Vertical Integration with Capital Precommitment: Monopolization vs. Long-Run Ine±ciency

We analyze the impact of vertical integration when a monopolistic producer can make a capital commitment before deciding on output. For the vertically separated industry structure, we ̄nd that opportunism resulting from competition between retailers leads to a longrun underinvestment in capital. With vertical integration, the capital investment is e±cient but output is monopolistically restrict...

Vertical integration in the teaching of final year medical students

Dear Editor, The traditional approach to medical educationhas been dichotomous, with a lack ofintegration between basic sciences and clinicalmedicine (1). Recent reforms have called forindividualizing the learning process, integratingknowledge with practice, and cultivating a spiritof lifelong learning (2). Vertical integrationbreaks the traditional division between clinicaland pre-clinical sci...

Asymmetric Vertical Integration

We examine vertical backward integration in a reducedform model of successive oligopolies. Our key findings are: (i) There may be asymmetric equilibria where some firms integrate and others remain separated, even if firms are symmetric initially; (ii) Efficient firms are more likely to integrate vertically. As a result, integrated firms also tend to have a large market share. The driving force ...

Is Vertical Integration Anticompetitive?

Vertical Integration and Production

We use two very large datasets to obtain some of the first systematic micro evidence on how production in vertically integrated firms differs from that of unlinked producers in the same industries. The Economic Census lets us observe virtually every establishment in the private economy, and crucially, the organizational structures of the firms that own them. The Commodity Flow Survey microdata ...