Market Analysis in the Presence of Indirect Constraints and Captive Sales
This paper analyzes merchant markets in the presence of vertically-integrated firms. We discuss when vertical integration tends to increase the elasticity of (derived) demand in the merchant market because of indirect contraints arising from the retail market. We also discuss the relevance of different measures of market power such as market shares in the wholesale or retail market. We provide insights into the likely effect of an upstream merger under vertical integration, depending on, for instance, whether the integrated firm currently sells into the merchant market or whether this can be expected after the merger.
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- Avenel, E. & Barlet, C., 2000.
"Vertical Foreclosure, Technological Choice and Entry on the Intermediate Market,"
Papiers d'Economie MathÃ©matique et Applications
2000.18, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Eric Avenel & Corinne Barlet, 2000. "Vertical Foreclosure, Technological Choice, and Entry on the Intermediate Market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 9(2), pages 211-230, 06.
- Eric Avenel & Corinne Barlet, 2000. "Vertical Foreclosure, Technological Choice, and Entry on the Intermediate Market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 9(3), pages 211-230, 06.
- Alexander Schrader & Stephen Martin, 1998. "Vertical Market Participation," Review of Industrial Organization, Springer, vol. 13(3), pages 321-331, June.
- Salinger, Michael A, 1988. "Vertical Mergers and Market Foreclosure," The Quarterly Journal of Economics, MIT Press, vol. 103(2), pages 345-56, May.
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