Transaction Costs and Vertical Integration

  • T. V. S. Ramamohan Rao

Abstract

Vertical integration into input production generally entails
  1. (a)

    the avoidance of monopolistic price cost margins of input suppliers,

     
  2. (b)

    a reduction in the market related and/or firm specific transaction costs, and

     
  3. (c)

    lower costs attributable to economies of scale and scope resulting from joint production.

     

Keywords

Transaction Cost Marginal Cost Internal Pressure Demand Curve Vertical Integration 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin · Heidelberg 1989

Authors and Affiliations

  • T. V. S. Ramamohan Rao
    • 1
  1. 1.Indian Institute of TechnologyKanpurIndia

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