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A note on acquisition of complements in a vertically differentiated market

Author

Listed:
  • 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. 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.
    2. 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.
    3. Jay Pil Choi, 2008. "Mergers With Bundling In Complementary Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 56(3), pages 553-577, September.
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    5. Economides, Nicholas & Salop, Steven C, 1992. "Competition and Integration among Complements, and Network Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 105-123, March.
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    8. 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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    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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