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Strategic vertical integration without foreclosure

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Author Info
Avenel, Eric (GREMAQ)

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Abstract

We determine the endogenous degree of vertical integration in a model of successive oligopoly that captures both efficiency gains and strategic effects. We show that vertical merger waves can be expected to stop by themselves before integration is complete. Consequently, vertical foreclosure plays no significant role in this paper that claims for a soft approach of vertical integration by antitrust authorities.

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File URL: http://repec.org/res2003/Avenel.pdf
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Publisher Info
Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 11.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:11

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Web page: http://www.res.org.uk/society/annualconf.asp
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Related research
Keywords: merger waves; vertical integration; vertical foreclosure;

Find related papers by JEL classification:
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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This page was last updated on 2009-12-21.

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