ABSTRACT
This chapter demonstrates the inherent advantages and disadvantages of network organization. These effects must be included in the economic analysis of vertical agreements. Vertical agreements required for the organization of value-added networks may accordingly be restrictive of competition by effect. The effects of vertical agreements depend mainly on their respective market circumstances. Networks take on a productive role in the scope of knowledge utilization since companies are exposed to the problem of having to permanently assert themselves on the market as well as adapt through innovation and flexibility. Despite the described variety of advantages that can evolve in value-added networks, the occurrence of disadvantages is possible in the network organization. The decision of actors to carry out their economic activities through a network organization in certain cases may lead to risks for society. Competition authorities are confronted with a major challenge concerning the legal treatment of network organizations.
