Do Prices Determine Vertical Integration? Evidence from around the World. Laura Alfaro, June 2014, Paper. "Despite its pertinence for policy, the role of market forces in determining firms’ integration decisions has received relatively little attention in development economics. This paper focuses on the relationship between product prices and vertical integration: while the IO literature has focused on how integration affects prices, we offer evidence that prices can affect integration. Many theories in organizational economics and industrial organization posit that integration, while costly, increases productivity..." Link