Forward vertical integration : the fixed-proportion case revisited

Assuming a fixed-proportion downstream production technology, partial forward integration by an upstream monopolist may be observed whether the monopolist is advantaged or disadvantaged cost-wise relative to fringe firms in the downstream market. Integration need not induce cost-predation and the profits of the fringe may increase. The output price falls and welfare unambiguously rises.

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Year of publication:	2007
Authors:	Bonroy, Olivier ; Larue, Bruno
Institutions:	Département Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2), Institut National de la Recherche Agronomique (INRA)
Subject:	VERTICAL INTEGRATION \| COST ASYMETRY \| COST PREDATION \| ASYMETRIE DES COUTS \| entreprise \| économie industrielle \| prix \| prix de marché \| concurrence économique \| intégration verticaleprofit

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Published in Economics Bulletin 1 pages long9
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010780405