A comparative analysis of vertical integration in the UK brewing and petrol industries

Looks fundamentally at the reasons for vertical integration. Specifically addresses the question of why vertical integration and close contractual equivalents have arisen in the petrol and brewing sectors of the UK. Reports the results of a comparative case study. Considers the ability of power and efficiency explanations to account for both the current pattern of vertical integration and its changes over time. Principally concludes the following: the recent history of vertical integration is better accounted for by efficiency rationales in the case of petrol and by market power in the case of brewing. Nevertheless, elements of both are present in each industry. Given the strong similarity in vertical and horizontal industry structure between these sectors, this implies that a case by case approach is preferable to a form‐based approach.