Corporate Law and Corporate Governance
Vertical Integration, Appropriable Rents, and the Competitive Contracting Process
Benjamin Klein, Robert G. Crawford, and Armen A. Alchian
- Year
- 1978
- Venue
- Journal of Law and Economics
- Level
- Introductory
Summary
Analyzes vertical integration as a response to appropriable quasi-rents created by relationship-specific investments. The article explains how post-contractual opportunism, asset specificity, and incomplete contracting can make ownership or integration preferable to repeated market contracting.
Citation
Benjamin Klein, Robert G. Crawford, and Armen A. Alchian. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process." Journal of Law and Economics, 1978.
BibTeX
@article{Klein1978Vertical,
title = {Vertical Integration, Appropriable Rents, and the Competitive Contracting Process},
author = {Benjamin Klein, Robert G. Crawford, and Armen A. Alchian},
year = {1978},
journal = {Journal of Law and Economics},
url = {https://ideas.repec.org/a/ucp/jlawec/v21y1978i2p297-326.html}
}