Vertical Integration in Gasoline Supply: An Empirical Test of Raising Rivals' Costs

Vertical Integration in Gasoline Supply: An Empirical Test of Raising Rivals Costs

This paper explores the relationship between the structure of the market for the reÞning and distribution of gasoline and the wholesale price of unbranded gasoline sold to independent gasoline retailers. Theoretically, the effect of an increase in vertical integration is ambiguous because opposing forces act to increase and decrease wholesale prices. We empirically examine the effects of vertic...

Vertical Integration, Raising Rivals’ Costs and Upstream Collusion

This paper analyzes the impact vertical integration has on upstream collusion when the price of the input is linear. As a first step, the paper derives the collusive equilibrium that requires the lowest discount factor in the infinitely repeated game when one firm is vertically integrated. It turns out this is the joint-profit maximum of the colluding firms. The discount factor needed to sustai...

An Empirical Analysis of Vertical Integration Determinants among Peasant Farmers in Northern Algeria

This study aims to analyze the determinants of vertical integration (ownership and contract-ing) among peasant farmers in Northern Algeria. The choice of asset control is between ownership and a simple contracting. Thus, the integration of vertical stages of agricultural produc-tion leads to higher gross margins, influences the choice of marketing and supply channels, and improves market partic...

Interorganizational System Characteristics and Supply Chain Integration: An Empirical Assessment

Some firms have gained significant benefits by effectively deploying interorganizational systems (IOS) to tightly couple operations with their supply chain partners. In contrast, other firms with IOS deployments have struggled to achieve this level of success. So it is not clear how such systems can be configured to promote idiosyncratic interorganizational processes that integrate the supply c...

A Dozen Reasons for Raising Gasoline Taxes