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A note on acquisition of complements in a vertically differentiated market

  • O. Tarola
  • C. Vergari

This note is concerned with the e¤ects 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.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp832.

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Date of creation: Jun 2012
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Handle: RePEc:bol:bodewp:wp832
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  1. Jean Gabszewicz & Nathalie Sonnac & Xavier Wauthy, 2000. "On Price Competition with Complementary Goods," Working Papers 2000-24, Centre de Recherche en Economie et Statistique.
  2. 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 105-23, March.
  3. Nicholas Economides, 1994. "Quality Choice and Vertical Integration," Working Papers 94-22, New York University, Leonard N. Stern School of Business, Department of Economics.
  4. Acharyya, Rajat, 1998. "Monopoly and product quality: Separating or pooling menu?," Economics Letters, Elsevier, vol. 61(2), pages 187-194, November.
  5. GABSZEWICZ, Jean & WAUTHY, Xavier, . "Quality underprovision by a monopolist when quality is not costly," CORE Discussion Papers RP -1573, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
  7. 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.
  8. Jay Pil Choi, 2008. "MERGERS WITH BUNDLING IN COMPLEMENTARY MARKETS -super-* ," Journal of Industrial Economics, Wiley Blackwell, vol. 56(3), pages 553-577, 09.
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