Williamson (1971) - The Vertical Integration Of Production
Revision as of 19:29, 30 April 2010 by imported>Ed
- This page is referenced in BPP Field Exam Papers
Reference(s)
Williamson, Oliver E. (1971), "The Vertical Integration of Production: Market Failure Considerations," American Economic Review, 61:112-23. pdf
Abstract
The study of vertical integration has presented difficulties at both theoretical and policy levels of analysis. That vertical integration has never enjoyed a secure place in value theory is attributable to the fact that, under conventional assumptions, it is an anomaly: if the costs of operating competitive markets are zero, "as is usually assumed in our theoretical analysis" (Arrow, 1969, p. 48), why integrate?
