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A note on acquisition of complements in a vertically differentiated market

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  • O. Tarola
  • C. Vergari

Abstract

This note is concerned with the effects of joint ownership of complements when they are vertically differentiated. We provide strong arguments for the positive nature of network integration among firms, while showing at the same time that, in some circumstances, anti-competitive consequences can be observed under acquisition.

Suggested Citation

  • O. Tarola & C. Vergari, 2012. "A note on acquisition of complements in a vertically differentiated market," Working Papers wp832, Dipartimento Scienze Economiche, Universita' di Bologna.
  • Handle: RePEc:bol:bodewp:wp832
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    References listed on IDEAS

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    1. Economides, Nicholas, 1999. "Quality choice and vertical integration," International Journal of Industrial Organization, Elsevier, vol. 17(6), pages 903-914, August.
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    3. Gabszewicz, Jean & Sonnac, Nathalie & Wauthy, Xavier, 2001. "On price competition with complementary goods," Economics Letters, Elsevier, vol. 70(3), pages 431-437, March.
    4. Gabszewicz, Jean J. & Wauthy, Xavier Y., 2002. "Quality underprovision by a monopolist when quality is not costly," Economics Letters, Elsevier, vol. 77(1), pages 65-72, September.
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    7. Acharyya, Rajat, 1998. "Monopoly and product quality: Separating or pooling menu?," Economics Letters, Elsevier, vol. 61(2), pages 187-194, November.
    8. Masayoshi Maruyama & Kazumitsu Minamikawa & Yusuke Zennyo, 2011. "A Note on the Desirability of Merger among Complements," Journal of Industry, Competition and Trade, Springer, vol. 11(1), pages 57-65, March.
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    More about this item

    JEL classification:

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

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