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relationship between technology intensity and vertical integration from a simple incomplete contracts model. Then, we investigate … find that the technology intensities of downstream (producer) and upstream (supplier) industries have opposite effects on … measures of technology intensity, with alternative estimation strategies, and with or without controlling for a number of firm …
Persistent link: https://www.econbiz.de/10014047998
depend on the relative investment intensity of the producer and the supplier so as to align investment incentives and …
Persistent link: https://www.econbiz.de/10013224089
dimensions of non- contractible investment. In equilibrium, the first best is attained if and only if ownership of tangible and … declines: the final producer must either integrate her suppliers, which prompts a decline in their investment; or else risk …
Persistent link: https://www.econbiz.de/10011084191
Understanding what determines firm boundaries and the choice between interacting in a firm or a market is not only the fundamental concern of the theory of the firm, but it is also one of the most important issues in economics. Data on value added, for example, reveal that in the US,...
Persistent link: https://www.econbiz.de/10005583022
dimensions of non-contractible investment. In equilibrium, the first best is attained if and only if ownership of tangible and … declines: the final producer must either integrate her suppliers, which prompts a decline in their investment; or else risk …
Persistent link: https://www.econbiz.de/10008756407
Bargaining sequences, though vital to the real-world business strategies, are often treated as exogenously given. We examine bargaining sequences in the setting where a downstream firm makes a merger decision with an upstream partner and faces a negotiation with a union. When the downstream...
Persistent link: https://www.econbiz.de/10010719506
The present paper studies and compares different vertical integration structures on consumers and total surplus with licensing by mean of a fixed fee in two successive homogeneous-good Cournot duopolies where one of the firms in each market has a different cost-reducing innovation. The key...
Persistent link: https://www.econbiz.de/10008470468
We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core …
Persistent link: https://www.econbiz.de/10012962608
We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core …
Persistent link: https://www.econbiz.de/10011597751
While Internet usage blossomed during the entire 1995-2001 time period, there was a large change in the nature of the high-speed Internet access business. Initially, connection, routing and content were three separate parts of high-speed Internet service. Cable companies initially teamed with...
Persistent link: https://www.econbiz.de/10012711596