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A note on successive oligopolies and vertical mergers

Author

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  • GABSZEWICZ, Jean J.

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • ZANAJ, Skerdilajda

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Abstract

In this paper we analyze how the technology used by downstream firms can influence input and output market prices. We show via an example that both these prices increase under a decreasing returns technology while the contrary holds when the technology is constant.

Suggested Citation

  • GABSZEWICZ, Jean J. & ZANAJ, Skerdilajda, 2007. "A note on successive oligopolies and vertical mergers," CORE Discussion Papers 2007074, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2007074
    as

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    File URL: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2007_74.pdf
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    References listed on IDEAS

    as
    1. Jean Gabszewicz & Didier Laussel & Tanguy Ypersele & Skerdilajda Zanaj, 2013. "Market Games in Successive Oligopolies," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(3), pages 397-410, June.
    2. GABSZEWICZ, Jean J. & ZANAJ, Skerdilajda, 2006. "Competition in successive markets : entry and mergers," CORE Discussion Papers 2006097, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. 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, September.
    4. Michael A. Salinger, 1988. "Vertical Mergers and Market Foreclosure," The Quarterly Journal of Economics, Oxford University Press, vol. 103(2), pages 345-356.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    successive oligopolies; vertical integration; technology; foreclosure;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts

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