Value Capture in Disintegrated Value Chains

Download or read book Value Capture in Disintegrated Value Chains written by Alexander Hoffmann and published by Springer. This book was released on 2015-11-17 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using cooperative game theory, this book shows how bargaining structure affects the distribution of value among the constituent firms of the value chain. Results show that positions in the bargaining structure most conducive to value capture are those where large complementarity gains are realized and split, ideally, among a small number of negotiators. Further, leveraging case studies from the aviation and home appliance industries the author suggests that the bargaining structure can be shaped through by architecture of the value chain and, in turn, through the architecture of the product, and the action of powerful firms to optimize value capture.