Last edited by Melkis
Tuesday, July 14, 2020 | History

2 edition of Vertical integration in competitive markets under uncertainty found in the catalog.

Vertical integration in competitive markets under uncertainty

by Dennis W. Carlton

  • 186 Want to read
  • 15 Currently reading

Published by M.I.T. Dept. of Economics in Cambridge, Mass .
Written in English


Edition Notes

Statementby Dennis W. Carlton
SeriesMassachusetts Institute of Technology. Dept. of Economics. Working paper -- no. 174, Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 174.
The Physical Object
Pagination46 p. ;
Number of Pages46
ID Numbers
Open LibraryOL24626679M
OCLC/WorldCa3675028

In particular, with two‐part tariff contracts under vertical separation, the input supplier is able to extract the entire monopoly profit of the industry, whereas vertical integration creates some cost distortion in the downstream market and hence lowers the total profits of the integrated entity. 5 In other words, without R&D, vertical. Focusing on the case of the Korean movie industry, this study shows that strategies such as market signaling, generalist strategy and vertical integration can contribute to improving the export performance of movies, and thereby help organizations effectively manage the risks of uncertainty arising from the export of movies.

Effect of vertical integration on risk and uncertainty specifically in the oil and gas sector. Academic literature shows that uncertainty is a significant determinant of vertical integration (Balakrishnan, S., Wernerfelt, B., ), (Harrigan, "Matching vertical integration stategies to competitive . Vertical integration is a corporate strategy tbat has been misunderstood. It has lotig been a key force in strategies migbt be more appropriate under different competitive circumstances, and it uses examples of on tbeories of market power and tbe ideal of perfectly competitive .

The analysis also suggests that firms' choice of the level of VI and IT investment, under different levels of demand uncertainty and industry concentration, are rational. When demand uncertainty is high or industry concentration is low, increase in VI may increase . Vertical integration is often closely associated with vertical expansion which, in economics, is the growth of a business enterprise through the acquisition of companies that produce the intermediate goods needed by the business or help market and distribute its product. Such expansion is desired because it secures the supplies needed by the firm to produce its product and the market needed to.


Share this book
You might also like
I have believed

I have believed

prophylaxis of post-partum haemorrhage

prophylaxis of post-partum haemorrhage

Transport phenomena.

Transport phenomena.

Interpretation in Architecture

Interpretation in Architecture

Naruto

Naruto

Guidelines for effective selective listening

Guidelines for effective selective listening

Forecasting the mountain wave.

Forecasting the mountain wave.

Netaji, the man

Netaji, the man

Report of a Regional Workshop on Theory and Practice of Trial Observation

Report of a Regional Workshop on Theory and Practice of Trial Observation

Charles Ives Omnibus

Charles Ives Omnibus

Cinq-Mars

Cinq-Mars

To mark the time

To mark the time

Franco means business

Franco means business

Vertical integration in competitive markets under uncertainty by Dennis W. Carlton Download PDF EPUB FB2

The theory of a single competitive market under uncertainty is presented. Then, the effects of the transmission of uncertainty between different markets are examined. Focusing on this transmission, the analysis shows that vertical integration can be regarded as a means of transferring risk from one sector of the economy to another.

VERTICALINTEGRATIONIN COMPETITIVEMARKETSUNDERUNCERTAINTY x By n Number ' April ,"MarketBehaviorUnder Uncertainty. Vertical integration in competitive markets under uncertainty — First published in Pages: Based on author's Ph.D.

thesis, Market behavior under uncertainty, M.I.T., September, Books. An illustration of two cells of a film strip. Video Vertical integration in competitive markets under uncertainty Item Preview remove-circlePages: "Vertical Integration in Competitive Markets under Uncertainty," Journal of Industrial Economics, Wiley Blackwell, vol.

27(3), pagesMarch. More about this item Statistics. Publisher Summary This chapter discusses the vertical integration under uncertainty. The role that uncertainty plays in influencing the decisions of firms to integrate vertically is.

Carlton, D.W., “Vertical Integration in Competitive Market Under Uncertainty,” Journal of International Economics, Vol. 27, No. 3 (March ). Each manufacturer chooses one of the three strategies: forward integration, backward integration, or no vertical integration.

We seek for a subgame perfect Nash equilibrium and study the resulting market structure. Moreover, we characterize the effect of vertical integration on profitability, product price, and quality in a competitive setting. models in which market size or thickness is an important determinant of vertical integration.

Second, competitive strategy can be a key factor in vertical integration decisions. A rich set of models in industrial organization emphasize the use of vertical integration as a way to raise entry barriers in one or both of the associated markets.

Vertical Integration in Competitive Markets under Uncertainty. Journal of Industrial Economics,vol. 27, issue 3, There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. - Under Armour is simply taking a page out of the Nike Plus book. Nike has scaled down its hardware innovations and is now really just a software platform that.

Carlton, Dennis. “Vertical Integration in Competitive Markets Under Uncertainty”. Journal of Industrial Economics – The book uses powerful analytical models to uncover the wild uncertainty that shapes the industry. Vertical Integration in Competitive Markets Under Uncertainty.

Article. Feb ; J Ind Econ. FedEx FedEx has developed their company and brand around a horizontal integration strategy offering different transportation options and services: FedEx Office, Federal Express, FedEx Ground, FedEx Tracking and many other subdivisions.

Within these different subdivisions, FedEx has varying degrees of vertical integration. Over the years FedEx has made strategic acquisitions to. Vertical integration, often defined as the combination of two or more stages of a production-marketing chain under a single ownership (Williamson, ), is the extent to which a firm transfers.

Virtually all theories of vertical integration turn in one way or another on the presence of market imperfections of some type. That is, deviations from the long list of explicit and implicit assumptions that are associated with textbook models of perfect competition and anonymous spot market transactions under perfect competition.

" Vertical Integration in Competitive Markets under Uncertainty," Journal of Industrial Economics, Wiley Blackwell, vol. 27(3), pagesMarch. Carlton, " Vertical Integration in Competitive Markets Under Uncertainty," Working papersMassachusetts Institute of Technology (MIT), Department of Economics.

The legal and economic literature on firms and markets thus tends to view vertical integration as the governance mechanism of last resort, to be used only when market.

PARVIZ ADIB, DAVID HURLBUT, in Competitive Electricity Markets, Temporal market power. Temporal market power is market power caused by a tightness of supply.

In some contexts, the theory of contestable markets and the limitations on antitrust enforcement have supported the notion of allowing some level of market power to exist, as long as it is not accompanied by abusive behavior.

According to transaction cost theory, vertical integration occurs under two conditions: When demand or volume uncertainty is high, a firm should outsource the activity. when technological uncertainty is high and supplier markets are competitive.

T/F. The purpose of the paper is to identify the main characteristics of vertical integration strategies and discuss the effects of those characteristics on companies' ability to compete. Using a sample of parent companies, the study found that industry uncertainty affected companies' decisions regarding their levels of vertical integration, but not companies' decisions to change those.

Vertical integration occurs when a company assumes control over several of the production steps involved in the creation of its product or service in a particular market.

In other words, vertical.Vertical integration and communication Kenneth J. Arrow Professor of Economics Harvard University Among the many possible motives for vertical integration, the one emphasized here is uncertainty in the supply of the up-stream good and the consequent needfor information by down-streamfirms.

The basic conclusion is that, even ivhen the initial.