EconPapers    
Economics at your fingertips  
 

Simulating Mergers in a Vertical Supply Chain with Bargaining

Gloria Sheu and Charles Taragin
Additional contact information
Charles Taragin: U.S. Department of Justice

No 201703, EAG Discussions Papers from Department of Justice, Antitrust Division

Abstract: We model a two-level supply chain where Nash bargaining occurs upstream, while firms compete in a differentiated products logit setting downstream. The parameters of this model can be calibrated with a discrete set of data on prices, margins, and market shares. Using a series of numerical experiments, we illustrate how the model can simulate the outcome of both horizontal and vertical mergers. In addition, we extend the framework to allow for downstream competition via a second score auction.

Keywords: bargaining models; merger simulation; vertical markets (search for similar items in EconPapers)
JEL-codes: L13 L40 L41 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2017-10
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.justice.gov/atr/simulating-mergers-vertical-supply-chain-bargaining (text/html)

Related works:
Journal Article: Simulating mergers in a vertical supply chain with bargaining (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:doj:eagpap:201703

Access Statistics for this paper

More papers in EAG Discussions Papers from Department of Justice, Antitrust Division Department of Justice Antitrust Division 450 Fifth Street NW Washington, DC 20530. Contact information at EDIRC.
Bibliographic data for series maintained by Tung Vu ().

 
Page updated 2024-07-14
Handle: RePEc:doj:eagpap:201703