Issue 5

September 1991
Articles: 

Vertical Relationships: An Introduction

This short essay introduces a special issue of The Journal of Industrial Economics on vertical relationships, including both vertical integration and vertical restraints.

Determinants of Vertical Integration: An Empirical Test

This paper tests models of vertical integration, with emphasis on incentives that arise from transactions costs and demand variability.

Efficiency and Vertical Integration: The Case of Mine-Mouth Electric Generating Plants

This paper tests four propositions regarding the efficiency of vertical arrangements.

The Measurement of Vertical Economies and the Efficient Structure of the Electric Utility Industry

In this article the concept of multiproduct cost economies is modified to the case of production at vertically related stages to derive an explicit and general measure of economies of vertical integra

Vertical Restraints with Incomplete Information

When a firm contracts with a privately informed retailer, vertical restraints may be insufficient to eliminate distortions arising from having to induce truthful reporting.

Resale Price Maintenance and Manufacturer Competition for Exclusive Dealerships

Two manufacturers distribute their brands through exclusive retail dealers, and must compete for consumers indirectly by inducing retailers to carry their brands.

Vertical Mergers in Multi-Product Industries and Edgeworth's Paradox of Taxation

When a two-product monopolist merges with one of its suppliers, thus eliminating the double marginalization for one of its goods, three qualitative effects on downstream prices can result.

Capturing Strategic Rent: Full-Line Forcing, Brand Discounts, Aggregate Rebates, and Maximum Resale Price Maintenance

This paper examines the implications of a retailer's shelf space stocking decisions on the optimal marketing strategy of an upstream multi-product monopolist.

Strategic Bargaining and Vertical Separation

Current theories of the vertical limits to firm size emphasise the consequences of opportunistic behaviour by managers.

Producer Opportunism in Retailing Contracts

This paper analyzes the role of ex post producer opportunism on the optimal design of vertical restraints. It considers vertical contracts as starting points of ex post renegotiation.