Please enable JavaScript.
Coggle requires JavaScript to display documents.
Variations on a Theme - Coggle Diagram
Variations on a Theme
Forward Integration into Distribution
applies the schema to a manufacturer's relationship with its distributors
the "science of choice" approach explained vertical market restrictions
the governance approach views them as a Node C solution
the Schwinn bicycle example
Regulation and Natural Monopoly
The "science of choice" approach
The governance approach
it insists on examining the contract implementation stage
Simple franchise bidding is highly problematic
for example: where the Fundamental Transformation applies
Disastrous deregulation of electricity in California
prime example of policymakers ignoring potential contractual hazards
Relationship with Labor
Node D is irrelevant
The choice is between Node A and Node C
Node A
describes generic labor
Node C
describes labor that has acquired firm-specific skills
The Contractual Schema
Figure 3
presents a simple 4-node schema
Relationship with Sources of Finance
Debt and equity are not just different financial instruments; they are "alternative modes of governance"
Node B
Equity (Node C)
Debt (Node A)