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Vertical Integration in the U.S. Cable Industry

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  • Ayako Suzuki

Abstract

Theory shows that vertical integration has contrasting two effects, efficiency and foreclosure effects. This study empirically estimates the relative size of these two effects. Unlike previous studies, I focus on a single vertical merger in order to use a panel dataset, and estimate its average treatment effects on the several market outcomes. The findings suggest that there was a significant efficiency gain from the merger; the merged systems were found to carry affiliated networks more frequently; there was a larger price decrease in the merged markets. On the other hand, there was weak evidence of foreclosure.

Suggested Citation

  • Ayako Suzuki, 2006. "Vertical Integration in the U.S. Cable Industry," ISER Discussion Paper 0675, Institute of Social and Economic Research, Osaka University.
    • Handle: RePEc:dpr:wpaper:0675
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    File URL: https://www.iser.osaka-u.ac.jp/library/dp/2006/DP0675.pdf
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    References listed on IDEAS

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