It is often thought that a tariff reduction, by opening up the domestic market to foreign firms, should lessen the need for a policy aimed at discouraging domestic mergers. This implicitly assumes that the tariff in question is sufficently high to prevent foreign firms from selling in the...

We propose a simple model of a partially integrated industry which explicitely takes into account persistant production cost differences across upstream firms, such as one might observe in natural resource industries. The model allows us to highlight the respective roles of strategic...

The purpose of this paper is to analyse the effect of upstream cost asymmetries on the behavior of integrated firms. The model highlights the respective roles of strategic considerations and of cost considerations in the determination of an integrated firm's interaction with the non integrated...

Consider a general equilibrium framework where the marginal cost of extraction from several deposits of an exhaustible resource is constant in terms of an inexhaustible perfect substitiute and differs between deposits. The instantaneous rate of productionfrom the inexhaustible resourcce is...