The impact of vertical integration on losses from collusion

Germán Bet, Shana Cui and David Sappington

International Journal of Industrial Organization, 2021, vol. 77, issue C

Abstract: Upstream collusion that increases the price of an input can harm an independent downstream producer (D). We ask whether this harm is more or less pronounced when D’s downstream rival is a vertically integrated producer. We find that such vertical integration increases D’s loss from collusion when D is not a particularly strong competitor. However, when D is a sufficiently strong competitor, vertical integration can reduce D’s loss from collusion when price competition prevails downstream.

Keywords: Collusion; Vertical integration; Antitrust damages (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:77:y:2021:i:c:s0167718721000497

DOI: 10.1016/j.ijindorg.2021.102756

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