Losing Sight of the Forest for the Trees? Productive Capabilities and Gains From Trade as Drivers of Vertical Scope
Abstract
Focusing on proving or disproving Transaction Cost Economics has led to a relative neglect of some key drivers of vertical scope, such as differences in productive capabilities (as opposed to capabilities of governance). We consider how productive capability differences can shape vertical scope through gains from trade. Using highly detailed data from the mortgage banking industry, we find productive capabilities to be a key determinant of the...
Paper Details
Title
Losing Sight of the Forest for the Trees? Productive Capabilities and Gains From Trade as Drivers of Vertical Scope
Published Date
Jan 1, 2005
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