Cunha, Mariana; Sarmento, Paula - Faculdade de Economia, Universidade do Porto - 2012
collusion. It is shown that a vertical merger between an upstream firm and a downstream cartel or fringe firm promotes … downstream collusion, under certain conditions on the market size. However, for low market concentration, a vertical merger with … a cartel firm hinders collusion. Moreover, a welfare analysis shows that consumer surplus increases with the vertical …