EMPIRICAL EVIDENCE ON ON VERTICAL 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...
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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...
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We report the results of experiments designed to test recent theories of vertical foreclosure. Consistent with the theory, vertical integration improves the upstream firm’s ability to commit to restricting output to the monopoly level, as does the use of public contracts. Public contracts are not a perfect substitute for vertical integration, however: integration allows more surplus to be extra...
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This paper exploits a unique panel dataset of Spanish manufacturing firms containing information on vertical restraints with retailers and wholesalers. This data reports detailed information on firm distribution systems and the type of vertical restraints that firms impose: Franchise fee, Resale price maintenance, Full-line forcing, Exclusive territories and Exclusive dealing, which is a rather...
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...
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ژورنال
عنوان ژورنال: Economic Inquiry
سال: 1994
ISSN: 0095-2583,1465-7295
DOI: 10.1111/j.1465-7295.1994.tb01331.x