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A note on successive oligopolies and vertical mergers.(Vertical integration facing separation)
- Article from:
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Communications & Strategies
- Article date:
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October 1, 2007
- Author:
- Gabszewicz, Jean J.; Zanaj, Skerdilajda
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Copyright informationCOPYRIGHT 2007 IDATE. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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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