Monopolies+(1-2)

Vertical Integration

Vertical integration describes a style of management control in microeconomic and management. It is contrasted with horizontal integration. Vertically integrated companies are united through a hierarchy and share a common owner. Most of the time each member of the hierarchy produces a different service or product and the products combine to satisfy a common need. Vertical integration is a method of avoiding the hold-up problem. A monopoly produced through vertical integration is called a vertical monopoly. Andrew Carnegie introduced the idea of vertical integration and this led others businessmen to using the system to promote much better efficiency and financial growth in their own businesses and companies.

Horizontal Integration

The Term is a type of ownership and control. Horizontal Integration is a strategy used by many big businesses and/or corporations that want to sell a certain type of product in many markets. In marketing horizontal integration is more common than Horizontal integration in production.

Group 2