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Gasoline production provides another example of supply restraints and competitive dominance by means of vertical integration. Market foreclosure plays a consistent role in the dynamics of the gasoline industry and more specifically with large refineries with significant capabilities of production. Researchers have estimated that US wholesale ...
A monopoly produced through vertical integration is called a vertical monopoly: vertical in a supply chain measures a firm's distance from the final consumers; for example, a firm that sells directly to the consumers has a vertical position of 0, a firm that supplies to this firm has a vertical position of 1, and so on. [2]
Vertical integration: In the case of double marginalization, both firms within the same supply chain are increasing their prices beyond their marginal costs which create deadweight losses. By vertically integrating, these deadweight losses will be eliminated and the vertically integrated company can incorporate a pricing strategy that is ...
A global production network is one whose interconnected nodes and links extend spatially across national boundaries and, in so doing, integrates parts of disparate national and subnational territories". [1] GPN frameworks combines the insights from the global value chain analysis, actor–network theory and literature on Varieties of Capitalism ...
Commodity chains can be unique depending on the product types or the types of markets. Different stages of a commodity chain can also involve different economic sectors or be handled by the same business. [1] A number of commentators have remarked that in the Internet age commodity chains are becoming increasingly more transparent.
It first appeared as a central component of macroeconomic theory as it was taught by Paul Samuelson in his textbook, Economics: An Introductory Analysis. The Keynesian cross plots aggregate income (labelled as Y on the horizontal axis) and planned total spending or aggregate expenditure (labelled as AD on the vertical axis). [1]
The course begins with a study of fundamental economic concepts such as scarcity, opportunity costs, production possibilities, specialization, and comparative advantage. Major topics include the nature and functions of product markets; factor markets; and efficiency, equity, and the role of government. [ 1 ]
Evolving from the notion of a stock derived bullwhip effect, there exists a similar, "financial bullwhip effect", explored in (Chen et al., 2013), [21] on bondholders' wealth along a supply chain by examining whether the internal liquidity risk effect on bond yield spreads becomes greater upwardly along the supply chain counterparties.