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A note on successive oligopolies and vertical mergers

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  • Jean J., GABSZEWICZ
  • Skerdilajda, ZANAJ

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 countrary holds when the technology is constant.

Suggested Citation

  • Jean J., GABSZEWICZ & Skerdilajda, ZANAJ, 2007. "A note on successive oligopolies and vertical mergers," Discussion Papers (ECON - Département des Sciences Economiques) 2007036, Université catholique de Louvain, Département des Sciences Economiques.
  • Handle: RePEc:ctl:louvec:2007036
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2007-36.pdf
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    References listed on IDEAS

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    1. Zanaj Skerdilajda, 2010. "Successive Oligopolies and Decreasing Returns," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-26, November.
    2. Géarard Gaudet & Ngo Van 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.
    3. 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.
    4. Michael A. Salinger, 1988. "Vertical Mergers and Market Foreclosure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(2), pages 345-356.
    5. GABSZEWICZ, Jean J. & ZANAJ, Skerdilajda, 2006. "Competition in successive markets : entry and mergers," LIDAM Discussion Papers CORE 2006097, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Zanaj Skerdilajda, 2010. "Successive Oligopolies and Decreasing Returns," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-26, November.

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    More about this item

    Keywords

    successive oligopolies; vertical integration; technology; foreclosure;
    All these keywords.

    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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