Vertical Integration Stifles Innovation, Hurts Consumers
The article explores how companies can make more money by controlling different parts of making a product, like from start to finish. When companies sell unique products that stand out, bigger companies may want to take control to get more profit. This competition could lead to less variety for shoppers and lower benefits for everyone. The study found that this issue is more common in industries with lots of innovation and competition between companies. Big companies can pressure smaller ones into giving up control to make even more money.