We define value creation, competition, and value appropriation, and show that (i) there is a minimal level of value creation that is required if competition is to allow a firm to appropriate value; (ii) there is a higher level of value creation guaranteeing competition will result in value...

We investigate the competitive consequence of vertical integration on organizational performance using a comprehensive dataset of U.S. motion picture production companies, which includes information on their vertical scope and competitive overlaps. Vertical integration appears to change the...