Using appropriate case study evidence, discuss the motives for vertical integration and consider the wider economic implications of vertically integrated firms. Submission: Via the Turnitin Drop Box that will be created on the module’s Moodle site. The maximum length of your report should be 2,000 words, plus supporting appendices and bibliography.
Assessment Criteria and weightings: Understanding of Key Concepts: 50% Quality of Discussion: 25% Use of Examples: 15% Presentation: 10%
Some pointers for the coursework
Answers should include the following sort of things:
– The essay needs some initial discussion of what we mean by vertical integration but the focus needed to be on the considerations that might lead firms to vertically integrate.
– You should link this to the concept of efficiency (technical and agency efficiency) and discuss how these two relate to ‘asset specificity’ (model of Williamson). Diagram (either bespoke or scanned with proper source information) could be included here.
– The should also relate this ideally to the related issues of hold-up and opportunism once specific assets come into existence. You can illustrate this with reference to one or more examples.
– The last part of the essay should contain your thoughts (from your review of literature and understanding) the economic implications of vertical integration.
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