An equilibrium theory of organizational forms : a complementary market analysis

dc.contributor.advisorStinchcombe, Maxwellen
dc.creatorCakirer, Kerem, 1979-en
dc.description.abstractThe dissertation develops an equilibrium theory of mergers in a complementary market setting where downstream firms sell a product which must have a compatible variety of products that are supplied by upstream firms. I map each of several different complementary market setting to a merger type, i.e vertical, counter, horizontal or none. I present the conditions under which a downstream firm will prefer integrating with an upstream firm, and conditions under a counter merger of firms occur. The analysis shows that a vertical merger is more likely to occur whenever one of the upstream firm is significantly productive than the other. However, counter integration of firms is also likely whenever the upstream firms are highly productive. Moreover, I present the conditions under which two downstream firms merge and form a new downstream firm. The findings support that the more competitive downstream market is , the more likely a horizontal merger is. In addition, a vertical merger, two vertical mergers and independent ownership can still be the outcome even though downstream competition is high. The results are obtained in a general two downstream firms and two upstream firms market setting that allows efficient compatibility contracts between upstream and downstream producers.
dc.rightsCopyright is held by the author. Presentation of this material on the Libraries' web site by University Libraries, The University of Texas at Austin was made possible under a limited license grant from the author who has retained all copyrights in the works.en
dc.subjectMarket analysisen
dc.subject.lcshConsolidation and merger of corporationsen
dc.subject.lcshEquilibrium (Economics)en
dc.titleAn equilibrium theory of organizational forms : a complementary market analysisen University of Texas at Austinen of Philosophyen

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