Economising, Strategising and the Vertical Boundaries of the firm
| Autor: | Dermot Leahy, Catia Montagna |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Transaction cost
business.industry 05 social sciences Disclaimer Vertical integration Final good Management Outsourcing Microeconomics Oligopoly Market structure Incentive 0502 economics and business Marginal product Economics Sociology 050207 economics business General Economics Econometrics and Finance Industrial organization 050203 business & management |
| Zdroj: | The B.E. Journal of Theoretical Economics. 17 |
| ISSN: | 1935-1704 2194-6124 |
| DOI: | 10.1515/bejte-2015-0085 |
| Popis: | We bridge the organisational economics and industrial economics literatures on the vertical boundaries of the firm by contextualising the transaction cost approach to the make-or-buy decision within an oligopolistic market structure. Firms invest in the quality of the intermediate resulting in the endogenous determination of the price of the intermediate and marginal production cost of the final good. We highlight new strategic incentives to outsource and/or vertically integrate and show how these incentives can result in asymmetric-mode-of-operations, investment and costs. We apply our model to a number of different international trading setups. |
| Databáze: | OpenAIRE |
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