Vertical mergers and downstream spatial competition with different product varieties

Hamid Beladi, Avik Chakrabarti () and Sugata Marjit

Economics Letters, 2008, vol. 101, issue 3, pages 262-264

Abstract: We show how, in an industry where no downstream firm can produce all varieties demanded, a vertical merger with a monopoly upstream will induce each downstream firm (inside and out of the merger) to deviate from the socially optimal location.

Keywords: Product-differentiationPrice-discrimination; Spatial-competition; Firm-location; Merger (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:eee:ecolet:v:101:y:2008:i:3:p:262-264

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