Partial Vertical Integration, Ownership Structure, and Foreclosure
نویسندگان
چکیده
منابع مشابه
Vertical Integration and Market Foreclosure
Few people would disagree with the proposition that horizontal mergers have the potential to restrict output and raise consumer prices. In contrast, there is much less agreement about the anti-competitive effects of vertical mergers. The purpose of this paper is to develop a theoretical model showing how vertical integration changes the nature of competition in upstream and downstream markets a...
متن کاملVertical Integration , Market Foreclosure and Quality Investment *
Incentives to vertically integrate are studied in an industry where downstream firms are vertically differentiated. Vertical integration by one of the firms increases production costs for the rival. Increased production costs impact quality investment both by the integrated firm and the unintegrated rival. A firm, integrating first, always produces the high quality good and earns higher profits...
متن کاملDownstream Competition, Foreclosure, and Vertical Integration
This paper analyzes the effect of competition among downstream rms on an upstream rm’s payoff and on its incentive to integrate vertically when rms in both segments negotiate optimal contracts. We argue that as downstream competition becomes more intense, the upstream rm obtains a larger share of a smaller downstream industry prot. The upstream rm may encourage downstream competition (eve...
متن کاملCementing Relationships: Vertical Integration, Foreclosure, Productivity, and Prices*
This paper looks at the reasons for and results of vertical integration, with specific regard to its possible effects on market power as proposed in the theoretical literature on foreclosure. It uses a rich plant-level data set of cement and ready-mixed concrete producers that spans several decades to perform a detailed case study. There is little evidence that vertical foreclosure effects are ...
متن کاملOption Contracts and Vertical Foreclosure
A model of vertical integration is studied. Upstream firms sell differentiated inputs; downstream firms bundle them to make final products. Downstream products are sold as option contracts, which allow consumers to choose from a set of commodities at predetermined prices. The model is illustrated by examples in telecommunication and health markets. Equilibria of the integration game must result...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: American Economic Journal: Microeconomics
سال: 2018
ISSN: 1945-7669,1945-7685
DOI: 10.1257/mic.20160058