Vertical Integration Strategies Redefine Power Dynamics in Oligopolies
The article explores how companies in competitive markets make decisions about combining different parts of their business. It looks at scenarios where firms work together or compete with each other. The researchers use mathematical models to predict how these decisions affect profits and market outcomes. They find that companies with similar goals tend to integrate more, while those with different goals may not. The study shows that the level of integration can impact prices, profits, and overall market structure.