Vertical Integration and Operational Flexibility

Moretto, Michele ; Rossini, Gianpaolo (2008) Vertical Integration and Operational Flexibility. Bologna: Dipartimento di Scienze economiche DSE, p. 27. DOI 10.6092/unibo/amsacta/4616. In: Quaderni - Working Paper DSE (631). ISSN 2282-6483.
Full text available as:
[img]
Preview
PDF
License: Creative Commons Attribution Non-commercial

Download (251kB) | Preview

Abstract

The main aim of the paper is to highlight the relation between flexibility and vertical integration. To this purpose, we go through the selection of the optimal degree of vertical disintegration of a flexible firm which operates in a dynamic uncertain environment. The enterprise we model enjoys flexibility since it can switch from a certain amount of disintegration to vertical integration and viceversa. This means that the firm never loses vertical control, i.e., the ability to produce all inputs even when it buys them in the market. This sort of flexibility makes for results which are somehow contrary to the Industrial Organization recent literature and closer to the Operations Research results. In this sense we provide a bridge between the two approaches and rescue Industrial Organization from counterintuitive conclusions.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Moretto, Michele
Rossini, Gianpaolo
Keywords
vertical integration, outsourcing, entry, flexibility
Subjects
ISSN
2282-6483
DOI
Deposit date
15 Feb 2016 13:17
Last modified
15 Feb 2016 13:17
URI

Other metadata

Downloads

Downloads

Staff only: View the document

^