In 1937, which Nobel Prize-winning economist first articulated the question of vertical integration, i.e., which stages of the value chain should be included within a firm's boundaries and why?
A) Ronald Coase
B) Adam Smith
C) David Ricardo
D) Milton Freidman

Question

Quizplus · Accepted Answer

Ronald Coase was awarded the Nobel Prize in Economics in 1991 for his work on transaction costs and the theory of the firm, which included the question of vertical integration. In his paper, "The Nature of the Firm," he explored why firms exist and how they determine the scope of their activities, including which stages of the value chain they should internally produce versus purchase from other firms.

In 1937, Which Nobel Prize-Winning Economist First Articulated the Question