In this paper, we present a model of endogenous vertical integration and horizontal differentiation. Thereexists two output brands and two versions of the input. The only mean for output differentiation is the inputversion used in output production. Firms may choose to vertically integrate to...

The paper studies the impact of a diversification vs. a core-competence oriented strategy using an agent-based simulation model with the aim to analyze whether agent-based models are a viable tool for analyzing questions related to corporate strategy.