Quality choice and vertical integration
نویسندگان
چکیده
منابع مشابه
Quality choice and vertical integration
We show that, despite coordination in the quality level of the components that they provide, independent vertically-related (disintegrated) monopolists will provide products of lower quality level than a sole integrated monopolist. Further, the integrated monopolist achieves higher market coverage, higher consumer surplus, and higher profits. We establish these results for any distribution of p...
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Incentives to vertically integrate are studied in an industry where downstream firms are vertically differentiated. Vertical integration by one of the firms increases production costs for the rival. Increased production costs impact quality investment both by the integrated firm and the unintegrated rival. A firm, integrating first, always produces the high quality good and earns higher profits...
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For the past few years, several big companies have taken actions to gain more control over their supply chains. Against the popular trend of outsourcing, they tend to go back to gain a higher level of vertical integration. Just as outsourcing once raised challenges to global management, the revival of vertical integration sure brings benefits as well as new challenges. Motivated by this recent ...
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ژورنال
عنوان ژورنال: International Journal of Industrial Organization
سال: 1999
ISSN: 0167-7187
DOI: 10.1016/s0167-7187(97)00063-5