Concentration Horizontale et Relations Verticales
This paper studies horizontal mergers in vertically related markets. In a two-level Cournot model, with an intermediate and a final market, we show that downstream mergers inducing size effects are, ceteris paribus, more profitable than upstream ones. Moreover, a merger at one level reduces the incentives to merge at the other level. Endogenizing the firms' decisions to merge by considering a merger game supports the previous results.
|Date of creation:||27 Apr 2007|
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