Corporate Law and Corporate Governance
The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration
Sanford J. Grossman and Oliver D. Hart
- Year
- 1986
- Venue
- Journal of Political Economy
- Level
- Advanced
Summary
Develops a property-rights theory of ownership by asking how residual control rights should be allocated when contracts are incomplete. The paper explains integration as a governance response to investment incentives and hold-up problems.
Citation
Sanford J. Grossman and Oliver D. Hart. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration." Journal of Political Economy, 1986.
DOI: 10.1086/261404
BibTeX
@article{Grossman1986The,
title = {The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration},
author = {Sanford J. Grossman and Oliver D. Hart},
year = {1986},
journal = {Journal of Political Economy},
doi = {10.1086/261404},
url = {https://doi.org/10.1086/261404}
}