Private incentives to vertical disintegration among firms with heterogeneous objectives

G. Rossini

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: A vertically integrated monopoly is compared to a decentralized market arrangement where production is segmented. A Labor Managed firm produces an input used by a profit maximizer manufacturer of a final good. Unlike what usually occurs between homogeneous firms we find circumstances in which the decentralised vertical arrangement is privately superior to the integrated one.

Date: 2003
New Economics Papers: this item is included in nep-com and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:476

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