Difference between revisions of "Monteverde Teece (1982) - Supplier Switching Costs And Vertical Integration In The Automobile Industry"
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Reference(s)
Monteverde, Kirk and David J. Teece (1982), "Supplier Switching Costs and Vertical Integration in the Automobile Industry", The Bell Journal of Economics, Vol. 13, No. 1. pp. 206-213 pdf
Abstract
This article tests a transactions cost theory of vertical integration with data from the U S. automobile industry. Existing theory is first refined to take into account industrial know-how and the cost of transferring such know-how. A testable model is then de- veloped, which is estimated by using probit techniques. The results support the view that transactions cost considerations surrounding the development and deepening of human skills have important ramifications ]br delineating efficient organizational boundaries.
