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Collusion et possibilité d’entrée en aval dans une industrie verticalement intégrée

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  • Avenel, Eric
  • Caprice, Stéphane

Abstract

We analyze the impact of an entry threat at the downstream level on the ability of a pair of vertically integrated incumbents to collude. Entrants depend on the vertically integrated firms on the intermediate market for the purchasing of good. While the entry threat leaves collusion profits unchanged, we show that deviation profits are also unchanged and that profits are lower in the punishment periods. Consequently, an entry threat facilitates collusion, thus benefiting to incumbents.

Suggested Citation

  • Avenel, Eric & Caprice, Stéphane, 2015. "Collusion et possibilité d’entrée en aval dans une industrie verticalement intégrée," TSE Working Papers 15-613, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:29970
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    References listed on IDEAS

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    Cited by:

    1. N. M. Rozanova, 2021. "Methodological Issues of Modern Competition Policy," Studies on Russian Economic Development, Springer, vol. 32(5), pages 492-498, September.

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    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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