Skip to main content
padlock icon - secure page this page is secure

Vertical Boundaries and Endogenous Intensity of Social Comparison

Buy Article:

Price: $25.00 + tax (Refund Policy)

We study how interfirm social comparison can alter the choice of two competing manufacturers between vertical integration and vertical separation if retailers are status-concerned. Status is determined by the difference in retailers' market shares. The novelty of our approach is that in line with empirical evidence, the intensity of social comparison (i) depends on the distance between retail outlets, and (ii) can be influenced by the manufacturers by adjusting their outlets' locations. In contrast to the commonly studied case of a distance-independent intensity of status concern, social comparison with a distance-dependent intensity of status concern might predict different vertical boundaries. (JEL: D03, L13, L22, R12)
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Keywords: price competition; social comparison; status concerns; vertical integration; vertical separation

Appeared or available online: October 4, 2018

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more