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Integration of Complementary Multiproduct Firms

Author

Listed:
  • Wang Hao

    (China Center for Economic Research, National School of Development, Peking University, Beijing100871, China)

Abstract

Two firms offer product series from which multiple complementary pairs are formed. The firms engage in a price- or quantity-choosing game in the market. It is found that the integration of the two firms may not necessarily lower the equilibrium prices because it precludes “indirect competition” in the market. Therefore, the integration, which may appear as a vertical integration, could be an antitrust concern even in the absence of exclusionary purpose.

Suggested Citation

  • Wang Hao, 2021. "Integration of Complementary Multiproduct Firms," Review of Law & Economics, De Gruyter, vol. 17(3), pages 647-655, November.
    • Handle: RePEc:bpj:rlecon:v:17:y:2021:i:3:p:647-655:n:3
    DOI: 10.1515/rle-2020-0058
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    More about this item

    Keywords

    antitrust; complement products; integration; multiproduct; L1; L4;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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