A Study Of Vertical Integration Selective Inducements

In the history of Economics, the research for vertical integration has been studied for a long time. Because it is help to explain two essential questions hereinafter: How the firms come into being? Where are the firms' boundaries? The Economists are used to puzzle for the reasons why some firms integrated vertically, but others divided the work specially, and they made quantities of investigations for this area.In the representative of Coase, the New Institution-Economics has researched the field of vertical integration particularly and perfectly, especially in his classical study "The Nature of the Firm", Coase used the transaction cost theory to release the firms from "the Black Box" for the first time. Thereafter, in the preconditions of opportunistic behavior and limited sense, another representative of New Institution-Economics who named Oliver Williamson discussed the characteristics of transacts and influences from three factors: uncertainty, asset specificity and frequency. He also put forward that different transacts should be matched to different governance structure according to their own characteristics. This study extended and deepened the transaction cost theory of Coase, provided the theory foundation for vertical integration, and promoted it at a large extent. So Williamson's research made the New Institution-Economics school become the mainstream of this field.However, without the restrict of classical economics, the New Institution-Economics only reviewed the nature of firm statically and isolatedly, and also can't explain the organization evolution in the dynamic background, this happened to be the severe bug for discussing vertical integration. Especially after the twentieth century, the combined of internet and computer technology is connecting the whole society with a new mode, and a new internet-economic is being formed. In this...