Horizontal integration in markets for complementary components and vertical product differentiation: A case-based analysis in the semiconductor industry

B. Westbrock

Research output: Working paperAcademic

Abstract

Observations of recent mergers and acquisitions (M&A) in the semiconductor and computer industry indicate that activities concentrate on the technology leaders in this market. The author examines the influence of players’ heterogeneous product technologies on their involvement in M&A. He provides a rationale for the influence with the help of a case study and a two-stage non cooperative game. The case is about an acquisition wave between suppliers in two semiconductor component markets. Exemplary for the whole industry, acquisition activities concentrated on the technology leader in one of the component markets. Technological heterogeneity is represented within a vertically differentiated product space in the model.
Original languageEnglish
Place of PublicationUtrecht
PublisherUU USE Tjalling C. Koopmans Research Institute
Number of pages32
Publication statusPublished - 2005

Publication series

NameDiscussion Paper Series / Tjalling C. Koopmans Research Institute
No.05
Volume05
ISSN (Electronic)2666-8238

Keywords

  • semiconductor industry
  • computer industry
  • horizontal integration
  • complementary product
  • product differentiation

Fingerprint

Dive into the research topics of 'Horizontal integration in markets for complementary components and vertical product differentiation: A case-based analysis in the semiconductor industry'. Together they form a unique fingerprint.

Cite this