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Endogenous industry structure in vertical duopoly

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  • Halonen, Maija

Abstract

This paper examines integration decisions of successive duopolists. It is shown that qualitatively the same pattern of integration emerges whether there is Cournot or Bertrand competition in the input market. The degree of integration in the industry is increasing in the size of the downstream market and decreasing in the average marginal cost of the industry and in the fixed integration cost. There jis a tendency for partial integration when one upstream firm is relatively efficient compared to its rival.

Suggested Citation

  • Halonen, Maija, 1994. "Endogenous industry structure in vertical duopoly," LSE Research Online Documents on Economics 6776, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:6776
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    File URL: https://researchonline.lse.ac.uk/id/eprint/6776/
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    Cited by:

    1. is not listed on IDEAS
    2. John Sutton, 2001. "Rich Trades, Scarce Capabilities: Industrial Development Revisited," STICERD - Economics of Industry Papers 28, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.

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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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