This paper studies the welfare consequences of a vertical merger that raises rivals' costs when downstream competition …, that this result extends to price competition with differentiated products. …

In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics … Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to … Bertrand competition if the upstream firm subsidises the quantity setting downstream firm's production via negative wholesale …

input suppliers, the equilibrium mode of competition in the downstream market is endogenously determined as a renegotiation …-downstream exclusive relationships credibly sustain the Cournot (Bertrand) mode of competition in the downstream market, when the goods are …