Abstract

http://ssrn.com/abstract=1681494
 
 

References (8)



 


 



Pitfalls in Vertical Arrangements


Gianpaolo Rossini


University of Bologna - Department of Economics

Cecilia Vergari


University of Bologna - Department of Economics

July 6, 2010

Quaderni DSE Working Paper No. 709

Abstract:     
A popular way of obtaining essential inputs requires the establishment of an input production joint venture (IPJV) in the upstream (U) section of the vertical chain of production by firms competing and selling …final goods in the downstream (D) section of the vertical chain. In spite of the apparently simple arrangement there are many possible governances for the management of the IPJV according to the ownership structure and to the degree of delegation granted to the IPJV by parent …firms. We explore the best sustainable governance arrangement for the IPJV. We address this question in a duopoly framework and we …find a large area of impossible vertical arrangements associated with technological asymmetry. The most likely governance of the vertical arrangement associated to the IPJV is total independence.

Number of Pages in PDF File: 16

Keywords: Input Production Joint Venture, Horizontal Differentiation, Oligopoly, Delegation, Bargaining

JEL Classification: L24, L42

working papers series


Download This Paper

Date posted: September 23, 2010  

Suggested Citation

Rossini, Gianpaolo and Vergari, Cecilia, Pitfalls in Vertical Arrangements (July 6, 2010). Quaderni DSE Working Paper No. 709. Available at SSRN: http://ssrn.com/abstract=1681494 or http://dx.doi.org/10.2139/ssrn.1681494

Contact Information

Gianpaolo Rossini (Contact Author)
University of Bologna - Department of Economics ( email )
Strada Maggiore 45
Bologna, 40125
Italy
+39+051+6402607 (Phone)
+39+051+6402664 (Fax)
Cecilia Vergari
University of Bologna - Department of Economics ( email )
Piazza Scaravilli 2
Bologna, 40100
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 258
Downloads: 29
References:  8

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.328 seconds