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Abstract

A number of past authors have argued that vertical coordination strategies lie along a continuum running from spot markets to vertical integration. However, the strategies that make up the middle of this continuum have remained ill defined and the sense in which the continuum is truly a continuum has not been made specific. This paper attempts to define the continuum and its "middle" strategies in such a manner that the continuum is truly a continuum has not been made specific. This paper attempts to define the continuum and its "middle" strategies in such a manner that the continuum becomes a useful means by which firm-level decision makers could examine their options for vertical coordination strategy.

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