Competitive effects of vertical integration

@inproceedings{Riordan2005CompetitiveEO,
  title={Competitive effects of vertical integration},
  author={Michael H. Riordan},
  year={2005}
}
The paper surveys the economics literature on the competitive effects of vertical integration, assesses the relevance of the economics literature for several recent regulatory and antitrust cases, and defends a structured rule of reason approach to evaluating the competitive effects. JEL classification: K4, L5 
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139 Citations
Highly Influential Citations
10
Background Citations
65
Methods Citations
1
Results Citations
2

139 Citations

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This paper analyzes the impact of vertical integration on the static and dynamic stability of downstream incomplete collusion. It is shown that a vertical merger between an upstream firm and a…
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We study the incentive to acquire a partial stake in a vertically related firm and then foreclose rivals. We show that whether such partial acquisitions are profitable depends crucially on the…
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References

SHOWING 1-10 OF 90 REFERENCES
On Vertical Mergers and Their Competitive Effects
It is well known that vertical integration cats change the pricing incentive of an upstream producer. However, it has not been noticed that vertical integration may also change the pricing incentive…
Transaction Cost Economics
The study of the governance of economic organization has become a lively and diverse field of research over the last four decades. This chapter describes the fundamental ideas of Transaction Cost…
Vertical Integration, Variable Proportions and Successive Oligopolies
This paper investigates the problem of how the effect of vertical integration upon the final product price is related to the production and/or market structures. Some ambiguous results of the…
Vertical integration, exclusive dealing, and ex post cartelization
This paper uncovers an unnoticed connection between exclusive contracts and vertical organization. A vertically integrated …rm can use exclusive dealing to foreclose an equally e¢ cient upstream…
Vertical Integration in the Presence of Upstream Competition
We analyze vertical integration to compare outcomes under upstream competition and monopoly. This is done in a model based on the property rights approach to firm boundaries and where multilateral…
Incomplete Contracts, Vertical Integration, and Supply Assurance
This paper extends the analysis of transactions cost models of vertical integration to multilateral settings. Its main focus is on supply assurance concerns which arise when several downstream firms…
Option Contracts and Vertical Foreclosure
A model of vertical integration is studied. Upstream firms sell differentiated inputs; downstream firms bundle them to make final products. Downstream products are sold as option contracts, which…
Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium
The consequences of a horizontal merger are typically studied by treating the merger as an exogenous change in market structure that displaces the initial Cournot equilibrium. In the new equilibrium…
Anticompetitive Vertical Integration by a Dominant Firm
Backward vertical integration by a dominant firm into an upstream competitive industry causes both input and output prices to rise. The dominant firm's advantage may or may not offset the negative…
Theory of Economic Regulation
The potential uses of public resources and powers to improve the economic status of economic groups (such as industries and occupations) are analyzed to provide a scheme of the demand for regulation.…
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