CEU Electronic Theses and Dissertations, 2008
| Author | Kuznetsov, Artem |
|---|---|
| Title | Upstream-Downstream Investment In a Partial Integrated Industry |
| Summary | The thesis proposes a model of the partially integrated oil industry, with a strict division of the production process into upstream and downstream. The model takes the form of a static non-cooperative game with the three types of players: pure upstream, pure downstream and integrated firms. The focus of the analysis is on the differences in incentives and optimal behavior between the types of the firms, with special emphasis on investment decisions and production cost asymmetry. Standard game theory tools and simulations are used in order to assess the investment behavior of firms and their interaction. The provided analysis also evaluates the strategic advantages and consideration of integrated firms. The thesis contributes to the understanding of the investment incentives of firms, provides insights into the effects and origins of production cost asymmetry in a vertically integrated industry and tries to explain the increasing share of specialized firms in the industry. |
| Supervisor | Baniak, Andrzej |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2008/kuznetsov_artem.pdf |
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