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Vertical Integration and Firm Boundaries: The Evidence

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Lafontaine, Francine, Slade, Margaret·2007·Journal of Economic Literature

Abstract

Since Ronald H. Coase's (1937) seminal paper, a rich set of theories has been developed that deal with firm boundaries in vertical or input–output structures. In the last twenty-five years, empirical evidence that can shed light on those theories also has been accumulating. We review the findings of empirical studies that have addressed two main interrelated questions: First, what types of transactions are best brought within the firm and, second, what are the consequences of vertical integration decisions for economic outcomes such as prices, quantities, investment, and profits. Throughout, we highlight areas of potential cross-fertilization and promising areas for future work.

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Metadata

Authors
Lafontaine, F., & Slade, M.
Venue
Journal of Economic Literature
Published
2007-07-01
Volume
45
Issue
3
Pages
629-685
ISSN
0022-0515 (ISSN-L)
OpenAlex
W2061360566
Cited by
711
References
4
FWCI
85.36
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Vertical Integration and Firm Boundaries: The Evidence. https://app.cochat.ai/papers/10.1257/jel.45.3.629
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Lafontaine, F., & Slade, M. (2007). Vertical Integration and Firm Boundaries: The Evidence. Journal of Economic Literature. https://doi.org/10.1257/jel.45.3.629

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.