Downstream Vertical Foreclosure and Upstream Innovation
AbstractThe author examines a link between downstream foreclosure and upstream innovation. The crucial ingredient of the model is the presence of dynamic economies of scale upstream in the form of competition in R&D. The reason an upstream supplier has a captive buyer is to force rival suppliers to incur the disadvantages of low-scale production and discourage them from innovating. The downstream buyer is offered favorable terms and is 'convinced' to sign an exclusive supply contract and accept captivity. In this context, downstream foreclosure may reduce consumer welfare. Copyright 1997 by Blackwell Publishing Ltd
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Industrial Economics.
Volume (Year): 45 (1997)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Karantininis, Kostas & Sauer, Johannes & Furtan, William Hartley, 2010. "Innovation and integration in the agri-food industry," Food Policy, Elsevier, vol. 35(2), pages 112-120, April.
- Köhler, Christian & Rammer, Christian, 2012. "Buyer power and suppliers' incentives to innovate," ZEW Discussion Papers 12-058, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Rey, Patrick & Tirole, Jean, 2007.
"A Primer on Foreclosure,"
Open Access publications from University of Toulouse 1 Capitole
http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Mikko Packalen, 2011. "Market Share Exclusion," Working Papers 1103, University of Waterloo, Department of Economics, revised Aug 2011.
- David A. Miller, 2005.
"Invention under uncertainty and the threat of ex post entry,"
- Miller, David A., 2008. "Invention under uncertainty and the threat of ex post entry," European Economic Review, Elsevier, vol. 52(3), pages 387-412, April.
- Suzuki, Ayako, 2009. "Market foreclosure and vertical merger: A case study of the vertical merger between Turner Broadcasting and Time Warner," International Journal of Industrial Organization, Elsevier, vol. 27(4), pages 532-543, July.
- Roberto Hernan & Praveen Kujal, 2006.
"Vertical Integration, Market Foreclosure And Quality Investment,"
Economics Working Papers
we061405, Universidad Carlos III, Departamento de Economía.
- Roberto Hernán González & Praveen Kujal, 2012. "Vertical integration, market foreclosure and quality investment," Portuguese Economic Journal, Springer, vol. 11(1), pages 1-20, April.
- Hernán, Roberto & Kujal, Praveen, 2012. "Vertical integration, market floreclosure and quality investment," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/14968, Universidad Carlos III de Madrid.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.