Competition in successive markets : entry and mergers
This paper analyses successive markets where the intra-market linkage depends on the technology used to produce the final output. We investigate entry of new firms, when entry obtains by expanding the economy, as well as collusive agreements between firms. We highlight the differentiated effects of entry corresponding to a constant or decreasing returns technology. In particular, we show that, under decreasing returns, free entry in both markets does not entail the usual tendency for the input price to adjust to its marginal cost while it does under constant returns. Then, we analyse collusive agreements by stressing the role of upstream linkage on the profitability of horizontal mergers A la Salant, Switzer and Reynolds.
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- Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983.
"On the Stability of Collusive Price Leadership,"
Canadian Journal of Economics,
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- Gérard Gaudet & Ngo Van Long, 1995.
"Vertical Integration, Foreclosure and Profits in the Presence of Double Marginalisation,"
CIRANO Working Papers
- Géarard Gaudet & Ngo Long, 1996. "Vertical Integration, Foreclosure, and profits in the Presence of Double Marginalization," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(3), pages 409-432, 09.
- Gérard Gaudet & Ngo Van Long, 1993. "Vertical Integration, Foreclosure and Profits in the Presence of Double Marginalisation," Cahiers de recherche du Département des sciences économiques, UQAM 9308, Université du Québec à Montréal, Département des sciences économiques.
- Hansen, Terje & Jaskold-Gabszewicz, Jean, 1972.
"Collusion of factor owners and distribution of social output,"
Journal of Economic Theory,
Elsevier, vol. 4(1), pages 1-18, February.
- HANSEN, Terje & JASKOLD GABSZEWICZ, Jean, . "Collusion of factor owners and distribution of social output," CORE Discussion Papers RP 101, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ordover, Janusz A & Saloner, Garth & Salop, Steven C, 1990. "Equilibrium Vertical Foreclosure," American Economic Review, American Economic Association, vol. 80(1), pages 127-42, March.
- repec:tpr:qjecon:v:98:y:1983:i:2:p:185-99 is not listed on IDEAS
- repec:tpr:qjecon:v:103:y:1988:i:2:p:345-56 is not listed on IDEAS
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