EconPapers    
Economics at your fingertips  
 

Outsourcing and Vertical Integration in a Competitive Industry

Federico Ciliberto () and John C. Panzar ()
Additional contact information
John C. Panzar: The University of Auckland Business School, Owen G. Glenn Building, 12 Grafton Road, Auckland, New Zealand

Southern Economic Journal, 2011, vol. 77, issue 4, 885-900

Abstract: We develop a partial equilibrium, perfectly competitive framework of a (potentially) vertically integrated industry. There are three types of firms: upstream firms that use primary factors to produce an intermediate good; downstream firms that use primary factors and intermediate goods to produce a final good; and vertically integrated firms that do both. We establish conditions under which vertically integrated firms exist and outsource (part of) the production of the intermediate input. We study the changes in industry configurations resulting from changes in costs and demand.

JEL-codes: F11 L11 L22 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.4284/0038-4038-77.4.885

Related works:
Working Paper: Outsourcing and Vertical Integration in a Competitive Industry (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sej:ancoec:v:77:4:y:2011:p:885-900

Access Statistics for this article

Southern Economic Journal is currently edited by Laura Razzolini

More articles in Southern Economic Journal from Southern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Laura Razzolini (). This e-mail address is bad, please contact .

 
Page updated 2020-07-07
Handle: RePEc:sej:ancoec:v:77:4:y:2011:p:885-900