Search results for "Vertical integration"
showing 10 items of 12 documents
Vertical Integration due to Software Systems' Modularity
2009
In their product portfolio, OSS/BSS software vendors make products pre-integrated with each other as well as with other related OSS/BSS products. Prior to the full-scale development and integration, it is vital for these vendors to assess which products are reasonable to integrate. Such integration of software may be aimed at achieving different goals, such as: Reducing software integration efforts. Software vendors aim at maximizing their profits, whereas their customers (i.e., CSPs) aim at minimizing their costs by avoiding the integration job. As a result, to approach a win–win scenario, vendors provide already integrated products or subsystems (pre-integrated modules). Sharing similar k…
Technical efficiency and the vertical boundaries of the firm: theory and evidence
2013
This article provides a theoretical and empirical analysis of the relationship between firms’ technical efficiency and the vertical organization of production. Technical inefficiency is explicitly introduced as the source of firms’ heterogeneity in a Bertrand–Nash model of industry competition: the main prediction of the model is that the most efficient firms choose vertical integrated structures and the less-efficient ones choose disintegrated structures. The empirical part of the article rests on a stochastic frontier analysis (SFA) in a sample of about 400 Italian machine tool (MT) builders, and the result supports the prediction of the theoretical model.
Internet two sided market regulation: A zero-ratong analysis from a theoretical and experimental approach
2022
El objetivo de esta tesis es estudiar las prácticas discriminatorias empleadas en el Mercado de Internet. Dichas prácticas han sido reguladas por la neutralidad de red en medio de un amplio y polémico debate político, económico y técnico. Con esta investigación, hemos querido analizar los efectos de los servicios de zero-rating desde una perspectiva teórica y experimental. Así mismo, proponemos un replanteamiento de la neutralidad de red a través de un estudio experimental que replica las interacciones entre agentes en el actual ecosistema digital. Capítulo 2: El objetivo de este capítulo es estudiar el efecto de los contratos de zero-rating en un mercado bilateral de duopolio de Internet. …
Vertical relationships for the European railway industry
2001
Abstract A key question in the reform process of Europe's railway industry is the decision whether to opt for a market structure that vertically integrates infrastructure and operations, or for one that separates them. In making this decision, knowledge of the relationship between operating costs and the infrastructure is fundamental. For this purpose a translogarithmic cost function is estimated, including the multi-product nature of railway companies and a measurement of the value of the infrastructure. The results show that costs deriving from freight transport and from the infrastructure are complementary, while those deriving from passenger transport and from the infrastructure are sub…
Municipal Thematical and Territorial Indicator Systems for Sustainable Socio-Ecological Coastal Governance
2017
Abstract . There are recognized in Latvia the lack of locally based coastal socio-ecological research knowledge and its interpretation into municipal safety and development planning from one side as well as also only land-side oriented and separate sectorial development interests based coastal municipalities’ governance/planning practice from other side. Coastal governance practice development problems solution at the local level are to be seen at both ends of governance cycle – coastal situation evaluation (e.g. science) and policy design and implementation . Overall objective is to create, apply/test and use applicable interface system for integrated coastal science transfer into integrat…
Vertical Integration due to Small Market Size and High Product Development and Integration Costs
2009
An independent software vendor (ISV) recovers the costs of software development and configuration through license fees. However, if the number of ISV's customers is limited, then either the license fees needed for recovering the software development investments may be too high (and hence the customer would prefer to develop the software internally), or the ISV's margin may have to be decreased. Given the costs of development and configuration, as well as the margins set by the ISVs, it is possible to estimate how many customers an ISV has to have in order to recover its costs. Furthermore, given a market of a specific size and the minimum number of ISV's customers, it is possible to assess …
On the Conditions of Price Consistency in the Input-Output Model
2013
The input-ouput model remains the basis of most SAM or CGE models. It actually uses two periods: the prices indexes solve it with the current period coefficients; the corresponding physical model is monoperiodic: the current prices solve it with the base period coefficients. The Leontief model is not consistent --- both models diverge generally --- unless the interindustry matrix of direct and indirect quantities of labor is stable over time. This implies that the vertically integrated labor coefficients are stable. This assumption is satisfied when the physical production coefficients and the physical labor coefficients are stable over time, two very strong assumptions.
Dynamics of structural change in agriculture, transaction cost theory and market efficiency: The case of cultivation contracts between agricultural e…
2022
In developed economies, the increasing openness of markets, the ease of trade and the speed of information lead to territorial imbalance and marginalization phenomena of small agricultural activities that cannot compete with the new models of agri-food systems. In this research, starting from this situation, we analyze through the Transaction Cost Theory what can be practised too recover competitiveness margins for small farms. From the study, it emerges that cultivation contracts represent a valid tool for the solution of various marginalization problems of many agricultural enterprises. In particular, from the experience gained over the past few years in Sicily, the cultivation contract b…
Vertical integration and exclusivities in maritime freight transport
2011
A key recent theme in maritime freight transport is the involvement of shipping lines in terminal management. Such investments are costly but allow liners to provide better service. Most of these new terminals are dedicated terminals but some are non-exclusive and let rivals access them for a fee. In this paper, we show that a shipping line that builds its own terminal finds it strategically profitable (i) to continue routing part of its cargo through the open port facilities, and (ii) to keep its terminal non-exclusive. In this way, the liner investor pushes part of the rival's freight from the open to the new terminal. Besides, under non-exclusivities, the shipping lines offer a wider var…
Vertical integration and profitability of the agrifood industry in an economic crisis context
2015
<p>In a setting of economic and financial crisis, most companies experienced a reduction in their profitability. Thus, our study allows us to identify vertical integration strategies developed by companies to overcome the crisis. This paper is aimed at unveiling the determining factors of the profitability of Spanish agrifood firms, depending on whether they are backwards vertically integrated or not. In order to attain our objective, we implemented a first difference regression model. The main contributions of the article lie in the incorporation of a variable that distinguishes integrated firms from the rest and the separate analysis of the two groups of firms. The results suggest t…