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A strategic rationale for captive supplies

Journal of Agricultural and Resource Economics 24(1): 1-18

A strategic rationale for captive supplies

A strategic rationale for partial backward integration is developed for a dominant processing firm with a competitive fringe purchasing from competitive input suppliers. A partially backward integrated dominant firm potentially can increase profit through production efficiency gains and through a lower price for externally purchased input.

Accession: 003027198

DOI: 10.2307/40987005

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