Option Contracts and Vertical Foreclosure
Ching-to Ma ()
Journal of Economics & Management Strategy, 1997, vol. 6, issue 4, 725-753
A model of vertical integration is studied. Upstream firms sell differentiated inputs; downstream firms bundle them to make final products. Downstream products are sold as option contracts, which allow consumers to choose from a set of commodities at predetermined prices. The model is illustrated by examples in telecommunication and health markets. Equilibria of the integration game must result in upstream input foreclosure and downstream monopolization. Consumers may or may not benefit from integration. Copyright (c) 1997 Massachusetts Institute of Technology.
References: Add references at CitEc
Citations: View citations in EconPapers (23) Track citations by RSS feed
Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=1997&part=null link to full text (text/html)
Access to full text is restricted to subscribers.
Working Paper: Option Contracts and Vertical Foreclosure (1995)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:jemstr:v:6:y:1997:i:4:p:725-753
Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1
Access Statistics for this article
More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().