Vertical Integration in the E-Commerce Sector

Claire Borsenberger, Helmuth Cremer, Denis Joram and Jean-Marie Lozachmeur
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Claire Borsenberger: Groupe La Poste
Denis Joram: Groupe La Poste
Jean-Marie Lozachmeur: Toulouse School of Economics, CNRS, University of Toulouse Capitole

A chapter in New Business and Regulatory Strategies in the Postal Sector, 2018, pp 143-160 from Springer

Abstract: Abstract We study vertical integration of a retailer and an operator in the e-commerce sector. Its impact on consumers involves a tradeoff between competition and double marginalization. The competition effect dominates when the number of independent retailers and operators is sufficiently large. Even when integration of a single retailer-delivery operator pair is initially welfare improving, the resulting market structure may not be sustainable and result in an integrated monopoly that is welfare inferior to the initial independent equilibrium. Multiple integration is typically welfare superior to the integration of a single retailer-delivery operator pair. Integration is more likely to have an adverse effect on welfare when the integrated firm delivers only to rural customers.

Date: 2018
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Vertical integration in the e-commerce sector (2019)
Working Paper: Vertical integration in the e-commerce sector (2018)
Working Paper: Vertical integration in the e-commerce sector (2018)
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DOI: 10.1007/978-3-030-02937-1_12

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