IDEAS home Printed from https://ideas.repec.org/a/bla/jindec/v39y1991i5p467-82.html
   My bibliography  Save this article

Efficiency and Vertical Integration: The Case of Mine-Mouth Electric Generating Plants

Author

Listed:
  • Kerkvliet, Joe

Abstract

This paper tests four propositions regarding the efficiency of vertical arrangements: (1) vertically integrated and nonintegrated firms allocate inputs with efficiency and (2) achieve equal technical efficiency; (3) upstream transaction-specific investments provide monopsony power; and (4) monopsony behavior does not differ by vertical arrangement. A behavioral cost function for mine-mouth generating plants is estimated. The findings include significant differences in the allocative efficiency of integrated versus nonintegrated plants and increased technical efficiency for vertically integrated plants. Transaction-specific investments in mines provide monopsony power. Nonintegrated plants exercise this power, while integrated plants do not. Copyright 1991 by Blackwell Publishing Ltd.

Suggested Citation

  • Kerkvliet, Joe, 1991. "Efficiency and Vertical Integration: The Case of Mine-Mouth Electric Generating Plants," Journal of Industrial Economics, Wiley Blackwell, vol. 39(5), pages 467-482, September.
    • Handle: RePEc:bla:jindec:v:39:y:1991:i:5:p:467-82
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-1821%28199109%2939%3A5%3C467%3AEAVITC%3E2.0.CO%3B2-N&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marissa Beck & Fiona Scott Morton, 2021. "Evaluating the Evidence on Vertical Mergers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(2), pages 273-302, September.
    2. Zhang, Vanessa Yanhua & Chen, Yongjun, 2011. "Vertical relationships in China’s electricity industry: The quest for competition?," Utilities Policy, Elsevier, vol. 19(3), pages 142-151.
    3. Fabio Pieri & Enrico Zaninotto, 2013. "Vertical integration and efficiency: an application to the Italian machine tool industry," Small Business Economics, Springer, vol. 40(2), pages 397-416, February.
    4. Mokhtar Kouki & Sang Park & Eric Renault, 2014. "Estimating scale economies in financial intermediation: a doubly indirect inference," Journal of Productivity Analysis, Springer, vol. 41(3), pages 351-365, June.
    5. Timothy Bresnahan & Jonathan Levin, 2012. "Vertical Integration and Market Structure [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    6. Takanori Ida & Tetsuya Kuwahara, 2004. "Yardstick Cost Comparison and Economies of Scale and Scope in Japan's Electric Power Industry," Asian Economic Journal, East Asian Economic Association, vol. 18(4), pages 423-438, December.
    7. Manoranjan Pattanayak Author- Workplace-Name: CRISIL LIMITED & Manoj Pant, "undated". "Corporate Governance, Competition and Firm Performance: Evidence from India," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 10-07, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    8. Darryl Biggar & Matthieu Glachant & Magnus Söderberg, 2018. "Monopoly regulation when customers need to make sunk investments: evidence from the Swedish district heating sector," Journal of Regulatory Economics, Springer, vol. 54(1), pages 14-40, August.
    9. Francine Lafontaine & Margaret Slade, 2007. "Vertical Integration and Firm Boundaries: The Evidence," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 629-685, September.
    10. Cui, Herui & Wei, Pengbang, 2017. "Analysis of thermal coal pricing and the coal price distortion in China from the perspective of market forces," Energy Policy, Elsevier, vol. 106(C), pages 148-154.
    11. Savitski, David W. & Nuryyev, Guych, 2018. "Enhancing electric reliability with storage-field generators," Energy Policy, Elsevier, vol. 121(C), pages 611-620.
    12. Meleshkina, Anna (Мелешкина, Анна) & Shastitko, Anastasia (Шаститко, Анастасия), 2018. "Institutional Initiative of Functioning of Firms in Conditions of a Bilateral Monopoly [Институциональная Инициатива Функционирования Фирм В Условиях Двусторонней Монополии]," Working Papers 041812, Russian Presidential Academy of National Economy and Public Administration.
    13. Giovanni Fraquelli & Davide Vannoni, 1996. "Regulation and Total Productivity in Electricity: A Comparison between Italy, Germany and France," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 65(4), pages 512-524.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:39:y:1991:i:5:p:467-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.