’Make or Buy’ as competitive strategy : evidence from the spanish local TV industry

Date
2015-02
Authors
Gil, Ricard
Ruzzier, Christian
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Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
This paper empirically investigates whether changes in product market competition affect firm boundaries. Exploiting regulation-induced shocks to entry barriers and differences in regulation enforcement across cities to obtain exogenous variation in competition, we establish a negative causal effect of competition (through reduced entry barriers and a larger number of rival firms) on vertical integration in the setting of the Spanish local television industry between 1995 and 2002.
Description
Fil: Gil, Ricard. Universidad de San Andrés. Departamento de Economía; Argentina.
Fil: Ruzzier, Christian. Universidad de San Andrés. Departamento de Economía; Argentina.
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