Business, Management and Accounting
4 years ago

Vertical Integration Transforms Industries, Empowers Businesses to Thrive

1 view
On the Transaction Cost Determinants of Vertical Integration
Michael D. Whinston

Paper Summary

The article explores different theories about why companies choose to integrate vertically. It compares Transaction Cost Economics and Property Rights Theory to see which one better explains why firms merge. The research suggests that the evidence supports Transaction Cost Economics more than Property Rights Theory when it comes to understanding vertical integration decisions.

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