منابع مشابه
Core Discussion Paper 2006/43 Upstream market foreclosure
This paper investigates how an incumbent monopolist can weaken potential rivals or deter entry in the output market by manipulating the access of these rivals in the input market. We analyze two polar cases. In the first one, the input market is assumed to be competitive with the input being supplied inelastically. We show that this situation opens the door to entry deterrence. Then, we assume ...
متن کاملVertical 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 کاملInteroperability and Market Foreclosure in the European Microsoft Case
In this paper we discuss some of the most important economic issues raised in European Commission vs. Microsoft (2004) concerning the market for work group servers. In our view, the most important economic issues relate to (a) foreclosure incentives and (b) innovation effects of the proposed remedy. We discuss the economic basis for the Commission’s claims that Microsoft had incentives to exclu...
متن کاملNonlinear Supply Contracts, Exclusive Dealing, and Equilibrium Market Foreclosure
We examine how the feasibility of both nonlinear pricing and exclusive dealing arrangements affect incentives for market foreclosure when two manufacturers contract with a retail monopolist. Surprisingly, we find that although market foreclosure equilibria exist, they are Pareto-dominated (from each manufacturer’s perspective) by all nonforeclosure equilibria. If one believes that Paretodominat...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2006
ISSN: 1556-5068
DOI: 10.2139/ssrn.922289