Vertical mergers that eliminate double markups are procompetitive

Simon Loertscher

Economics Bulletin, 2008, vol. 4, issue 22, 1-6

Abstract: Assuming that oligopolistic downstream firms take intermediate goods prices as given and that upstream and integrated firms choose their quantities first and simultaneously, this note shows that vertical mergers between upstream and downstream firms are procompetitive.

Keywords: Vertical; integration (search for similar items in EconPapers)
JEL-codes: D4 L1 (search for similar items in EconPapers)
Date: 2008-07-03
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