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...

The diversion ratio is a key input to many indicators of merger harm. Measuring the diversion ratio, however, is challenging in the presence of state dependence driven by things like consumer switching costs. We propose an identification strategy for diversion based on win/loss data. First, we...