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A note on successive oligopolies and vertical mergers.(Vertical integration facing separation)

Abstract: In this paper we analyze how the technology used by downstream firms can influence input and output market prices resulting from collusive agreements between some downstream and upstream firms. We show via an example that both these prices increase under a decreasing returns technology while the contrary holds when the technology is constant.

Key words: successive oligopolies, vertical integration, technology, foreclosure.

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Many industries, like the media markets, have been objects of profound mutations, which are both of a technological and structural nature. For instance, the technological developments of new distribution channels, like the ...

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