On inter-industry variation in the vertical integration of advertising services

Sharon Horsky, Alvin J. Silk, Steven C. Michael

Research output: Working paper

Abstract

We investigate inter-industry variation in the relative incidence of advertisers' utilization of in-house rather than independent advertising agencies. To account for this variability, we develop a set of hypotheses drawing. The first perspective emphasizes scale economies and "double marginalization." The second perspective is that of transactions cost economics. The hypotheses are tested using a database consisting of a cross section of 70 two digit SIC industries measured at two points in time, 1991 and 1999.
Original languageEnglish (US)
Place of PublicationBoston
PublisherHarvard Business School
Number of pages53
StatePublished - 2005

Publication series

NameWorking Paper
No.06-025

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