Networks versus Vertical Integration
构建理论比较垂直一体化企业与制造商-供应商网络，发现当制造商面临较大异质性需求冲击时，网络能带来更高社会福利，且企业有激励形成网络，即使缺乏长期合同。
We construct a theory to compare vertically integrated firms to networks of manufacturers and suppliers. Vertically integrated firms make their own specialized inputs. In networks, manufacturers procure specialized inputs from suppliers that, in turn, sell to several manufacturers. The analysis shows that networks can yield greater social welfare when manufacturers experience large idiosyncratic demand shocks. Individual firms may also have the incentive to form networks, despite the lack of long-term contracts. The analysis is supported by existing evidence and provides predictions as to the shape of different industries.