Abstract
Vertical integration into input production generally entails
-
(a)
the avoidance of monopolistic price cost margins of input suppliers,
-
(b)
a reduction in the market related and/or firm specific transaction costs, and
-
(c)
lower costs attributable to economies of scale and scope resulting from joint production.
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© 1989 Springer-Verlag Berlin · Heidelberg
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Rao, T.V.S.R. (1989). Transaction Costs and Vertical Integration. In: Economic Efficiency of the Organizational Decisions of the Firm. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-75005-2_6
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DOI: https://doi.org/10.1007/978-3-642-75005-2_6
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-51570-8
Online ISBN: 978-3-642-75005-2
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