General Motors acquisition of Fisher Body in 1926 provides a powerful example of how specificity of assets and incompleteness of contracts constitute significant factors leading to vertical integration. Discuss.

1750 words. Initial readings: 1. Klein, B, 1998, Hold up Problem in Peter K Newman ed, The New Palgrave Dictionary of Economics and Law, Vol 2, MacMillan, London. Available on Keats. 2. Coase, R. H, 2006, The Conduct of Economics: the example of Fisher Body and General Motors, Journal of Economics and Management Strategy, Vol 15, No 2, 255-278. Available on Keats. 3. Klein, B, 2007, The Economic Lessons of Fisher-Body-General Motors, International Journal of the Economics of Business, Vol 14, No 1.

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