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Presumptions in Vertical Mergers: The Role of Evidence

Author

Listed:
  • Francine Lafontaine

    (University of Michigan
    CEPR)

  • Margaret E. Slade

    (The University of British Columbia)

Abstract

Vertical mergers have attracted much attention in recent years. We assess the role of presumptions and likelihoods in vertical merger analysis and guidelines. We focus in particular on the role that we believe statistical evidence in general—and retrospective analyses more specifically—should play in determining presumptions. We also discuss how horizontal merger guidelines provide frameworks to analyze the horizontal issues that can be associated with vertical mergers. We conclude that while some vertical mergers may raise concerns, the evidence at this point does not provide sufficient guidance to develop presumptions that are related to strictly vertical issues.

Suggested Citation

  • Francine Lafontaine & Margaret E. Slade, 2021. "Presumptions in Vertical Mergers: The Role of Evidence," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(2), pages 255-272, September.
    • Handle: RePEc:kap:revind:v:59:y:2021:i:2:d:10.1007_s11151-021-09831-0
    DOI: 10.1007/s11151-021-09831-0
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    References listed on IDEAS

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    Cited by:

    1. Marissa Beck & Fiona Scott Morton, 2021. "Evaluating the Evidence on Vertical Mergers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(2), pages 273-302, September.
    2. Brianna L. Alderman & Roger D. Blair, 2023. "Vertical integration to avoid monopsonistic exploitation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 1824-1832, June.
    3. Roger D. Blair, 2021. "The 2020 Vertical Merger Guidelines," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(2), pages 133-138, September.
    4. Tirza J. Angerhofer & Roger D. Blair, 2021. "Successive Monopoly, Bilateral Monopoly and Vertical Mergers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(2), pages 343-361, September.

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    More about this item

    Keywords

    Legal presumptions; Evidence; Merger retrospectives;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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