Vertical mergers that eliminate double markups are procompetitive

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.

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Year of publication:	2008-07-03
Authors:	Loertscher, Simon
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 4.2008, 22, p. 1-6
Publisher:	AccessEcon
Subject:	Vertical integration

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Extent:	application/pdf
Type of publication:	Article
Classification:	D4 - Market Structure and Pricing ; L1 - Market Structure, Firm Strategy, and Market Performance
Source:	RePEc - Research Papers in Economics

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