Contracting for Innovation: Vertical Disintegration and Interfirm Collaboration
Abstract
Rapidly innovating industries are just not behaving the way theory expected. Conventional industrial organization theory predicts that when parties in the supply chain have to make transaction-specific investments, the risk of opportunism will drive them away from contracts and toward vertical integration. Despite the conventional theory, contemporary practice is moving in the other direction. Instead of vertical integration, we observe vertical...
Paper Details
Title
Contracting for Innovation: Vertical Disintegration and Interfirm Collaboration
Published Date
Jan 1, 2008
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