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’Make or Buy’ as Competitive Strategy: Evidence from the Spanish Local TV Industry

Author

Listed:
  • Christian Ruzzier

    (Department of Economics, Universidad de San Andres)

  • Ricard Gil

    (Johns Hopkins Carey Business School)

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.

Suggested Citation

  • Christian Ruzzier & Ricard Gil, 2015. "’Make or Buy’ as Competitive Strategy: Evidence from the Spanish Local TV Industry," Working Papers 119, Universidad de San Andres, Departamento de Economia, revised Feb 2015.
    • Handle: RePEc:sad:wpaper:119
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    File URL: https://webacademicos.udesa.edu.ar/pub/econ/doc119.pdf
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    References listed on IDEAS

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    Cited by:

    1. Nishida, Mitsukuni & Gil, Ricard, 2014. "Regulation, enforcement, and entry: Evidence from the Spanish local TV industry," International Journal of Industrial Organization, Elsevier, vol. 32(C), pages 11-23.

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    More about this item

    Keywords

    competition; vertical integration; Spanish television;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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