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’Make or Buy’ as Competitive Strategy: Evidence from the Spanish Local TV Industry

Christian Ruzzier () and Ricard Gil ()

No 119, Working Papers from Universidad de San Andres, Departamento de Economia

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)
JEL-codes: D22 L22 L24 L82 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2015-02, Revised 2015-02
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-cul and nep-reg
References: View references in EconPapers View complete reference list from CitEc
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https://webacademicos.udesa.edu.ar/pub/econ/doc119.pdf First version, 2015 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:sad:wpaper:119

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