Vertical Integration

question 112

Multiple Choice

Vertical integration:

• A) occurs when a firm purchases its inputs in a market.
• B) is attractive when relationship-specific exchange is unimportant.
• C) occurs when a firm produces its own inputs.
• D) is a spot exchange phenomenon.

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Definitions:

Internal Attributions

The process of explaining one's own or others' behaviors and outcomes as being caused by internal, personal factors.

External Attributions

External attributions are explanations for a person's behavior that refer to outside causes, such as other people's actions or environmental factors, rather than internal states.

Investment Model

A theory in social psychology that examines how commitment in relationships is determined by satisfaction, quality of alternatives, and the level of investment one has put into the relationship.

Long-Term Relationship

A committed partnership or connection between individuals that persists over a significant period.