战略经济学(五).pdfVIP

Economics of Strategy Besanko, Dranove, Shanley and Schaefer Chapter 4 Organizing Vertical Boundaries: Vertical Integration and its Alternatives 对外经济贸易大学李自杰 Vertical Boundaries  For each step in the vertical chain the firm has to decide between market exchange and vertical integration  The degree of vertical integration differs – Across industries(铝比锡高) – Across firms within an industry （通用比福特高） – Across transactions with in firm （运输的外包） Reasons to Buy rather than Make  Market firms (outside specialists) may have patents/proprietary information that makes low cost production possible  Market firms can achieve economies of scale that in-house units cannot  Market firms are subject to market discipline, whereas in-house units may be able to hide their inefficiencies behind overall corporate success (Agency and influence costs) Reasons to Make  Costs imposed by poor coordination  Reluctance of partners to develop and share valuable private information  Transactions cost that can be avoided by performing the task in-house The Tradeoff in Vertical Integration  Using the market improves technical efficiency (least cost production)  Vertical integration improves agency efficiency (coordination, transactions costs)  Firm should “economize” - choose the best possible combination of technical and agency efficiencies  生产成本与交易成本的权衡 Technical Efficiency  Using the market leads to higher technical efficiency compared to vertical integration (power of market discipline)  The difference in technical efficiency of market over vertical integration (T) depends on the nature of the assets involved in production Technical and Agency Efficiency Efficiency Tradeoff  The combined (market over vertical integr