'Make or Buy' as Competitive Strategy: Evidence from the Spanish Local TV Industry

53 Pages Posted: 7 Feb 2013 Last revised: 28 May 2013

See all articles by Ricard Gil

Ricard Gil

Queen's University (Canada) - Smith School of Business; Johns Hopkins University - Carey Business School

Christian A. Ruzzier

University of San Andres (UMSA) - Department of Economics

Date Written: May 22, 2013

Abstract

This paper empirically investigates whether changes in product market competition affect firm boundaries. Exploiting regulation-induced shocks to entry barriers and differences in regulation enforcement across cities to obtain exogenous variation in competition, we establish a negative causal effect of competition (through reduced entry barriers and a larger number of rival firms) on vertical integration in the setting of the Spanish local television industry between 1995 and 2002. We also find that stations located in larger markets are on average more likely to produce their content in-house than stations in smaller markets, and that private stations outsource more.

Keywords: competition, vertical integration, Spanish television

JEL Classification: D22, L22, L24, L82

Suggested Citation

Gil, Ricard and Ruzzier, Christian A., 'Make or Buy' as Competitive Strategy: Evidence from the Spanish Local TV Industry (May 22, 2013). Available at SSRN: https://ssrn.com/abstract=2213070 or http://dx.doi.org/10.2139/ssrn.2213070

Ricard Gil (Contact Author)

Queen's University (Canada) - Smith School of Business ( email )

Smith School of Business - Queen's University
143 Union Street
Kingston, Ontario K7L 3N6
Canada

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

HOME PAGE: http://carey.jhu.edu

Christian A. Ruzzier

University of San Andres (UMSA) - Department of Economics ( email )

Vito Dumas 284
B1644BID Victoria, Buenos Aires
Argentina

Register to save articles to
your library

Register

Paper statistics

Downloads
46
Abstract Views
436
PlumX Metrics