IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-09-00473.html
   My bibliography  Save this article

Vertical integration with fixed cost in an upstream market: NSK/Amatsuji merger

Author

Listed:
  • Tomomichi Mizuno

    () (Competition Policy Research Center, Japan Fair Trade Commission)

  • Koki Arai

    () (Competition Policy Research Center, Japan Fair Trade Commission)

  • Chizuru Ikeda

    () (Graduate School of Law, Kobe University)

  • Nobufumi Nishimura

    () (Faculty of Economics, University of Toyama)

Abstract

In this paper, we discuss the case of the integration between NSK and Amatsuji Steel Ball by using the successive oligopoly model. We show that the integration does not lead to input foreclosure. However, it leads to customer foreclosure, if the fixed cost of a rival firm in the upstream market is high. Even in the case of customer foreclosure, since the integration reduces the final goods price, it is always beneficial for consumers.

Suggested Citation

  • Tomomichi Mizuno & Koki Arai & Chizuru Ikeda & Nobufumi Nishimura, 2009. "Vertical integration with fixed cost in an upstream market: NSK/Amatsuji merger," Economics Bulletin, AccessEcon, vol. 29(3), pages 2438-2448.
  • Handle: RePEc:ebl:ecbull:eb-09-00473
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I3-P89.pdf
    Download Restriction: no

    More about this item

    Keywords

    NSK/Amatsuji merger; Vertical integration; Foreclosure;

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-09-00473. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.