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A note on successive oligopolies and vertical mergers

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  • Jean J., GABSZEWICZ
  • Skerdilajda, ZANAJ

Abstract

In this paper we analyze how the technology used by downstream firms can influence input and output market prices. We show via an example that both these prices increase under a decreasing returns technology while the countrary holds when the technology is constant.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2007036.

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Length: 14
Date of creation: 01 Dec 2007
Date of revision:
Handle: RePEc:ctl:louvec:2007036

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Keywords: successive oligopolies; vertical integration; technology; foreclosure;

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  1. GABSZEWICZ, Jean J. & ZANAJ, Skerdilajda, 2006. "Competition in successive markets : entry and mergers," CORE Discussion Papers 2006097, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Géarard Gaudet & Ngo Long, 1996. "Vertical Integration, Foreclosure, and profits in the Presence of Double Marginalization," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(3), pages 409-432, 09.
  3. Jean Gabszewicz & Didier Laussel & Tanguy Van Ypersele & Skerdilajda Zanaj, 2008. "Market games and successive oligopolies," CREA Discussion Paper Series 08-05, Center for Research in Economic Analysis, University of Luxembourg.
  4. Salinger, Michael A, 1988. "Vertical Mergers and Market Foreclosure," The Quarterly Journal of Economics, MIT Press, vol. 103(2), pages 345-56, May.
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