The paper addresses the effect of technological progress on the frontiers of the firm, building on transaction cost theory and agency theory. The model incorporates four types of costs: production, coordination, management, and transaction costs. The market has lower production costs, but higher...

It has long been suspected that the organization and ownership of firms could affect the innovation performance of industries in Canada by influencing economic incentives to generate new products and processes. This paper provides a general overview of the theoretical and empirical literature on...

The paper analyzes the evolution of vertical integration during the product life cycle. It is shown that increases in demand increase the incentives for vertical integration, while increases in competition reduce them. Next, the paper analyzes the interaction between demand growth and changes in...

This paper studies the impact of cooperative R&D on innovation, welfare, and profitability in vertically related industries with differentiated products. The model incorporates two vertically related industries, with horizontal spillovers within industries and vertical spillovers between them....

The paper addresses the effect of technological progress on the boundaries of the firm, building on transaction cost theory and agency theory. The model incorporates four types of costs: production, coordination, management, and transaction costs. The market has lower production costs, but...

While endogenous merger analysis has been applied to horizontal mergers, the thrust of vertical merger analysis has been based on exogenous mergers. The goal of this paper is to analyze endogenous vertical mergers. I consider a market structure with a downstream monopolist and an oligopolistic...