FUNDAMENTOS TEÓRICOS DE LA INTEGRACIÓN VERTICAL 1
ABSTRACT In order to analyze the concept of the vertical integration of companies and the possible effect s on the final prices and the power of market, this article leads from an approach of which it is the company and the relationships that occur internally and externally considering the approach which is different from the neoclassic conventional model. The n, the foundations and theoretical determinants of vertical integration, cuasi - integration and partial vertical integration are settled down. And finally emphasis in the market power, the double marginalization and the distortions of market that are desc ribed to the possible effects derived from this integration.
- American Economic Review 02/1981; 71(3):334-46. · 2.69 Impact Factor
- [show abstract] [hide abstract]
ABSTRACT: The potential of post-contractural apportunistic behavior for improving market efficiency through intrafirm rather than interfirm transactions is examined under the assumption that vertical costs will increase less than contracting costs as specialized assets and appropriable quasi rents increase. Vertical integration protects against the risk of contract cancellation and can create market power which is not generally referred to as monopoly. Contracts used as a alternative provide economically enforceable protection against opportunistic behavior. Solutions to opportunistic behavior problems can include joint ownership of common assets and condominium ownership of services. Economies of scale are major factors in some businesses, such as insurance. The complexities of ownership relations makes it difficult to assign higher costs to either the contract or vertical-integration approach. This suggests that economic analysis should be used to identify which is most advantageous for specific kinds of activities.The Journal of Law and Economics 02/1978; 21(2):297-326. · 0.89 Impact Factor
- Journal of Law and Economics. 02/1979; 22(2):233-61.