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The Impact of Competition on “Make-or-Buy” Decisions: Evidence from the Spanish Local TV Industry

Ricard Gil () and Christian Ruzzier ()

Management Science, 2018, vol. 64, issue 3, 1121-1135

Abstract: This paper empirically investigates whether changes in product market competition affect firm boundaries. Exploiting regulation-induced shocks to entry barriers and differences in regulation enforcement across cities to obtain exogenous variation in competition, we establish a negative causal effect of competition (through reduced entry barriers and a larger number of rival firms) on vertical integration in the setting of the Spanish local television industry between 1995 and 2002.

Keywords: competition; vertical integration; Spanish television (search for similar items in EconPapers)
Date: 2018
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