Faulí-Oller, Ramón; Díez, Joel Sandonís - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2003
The result of neutrality of vertical integration for competition postulated by the Chicago School can be supported by a benchmark model with (1) an upstream monopolist, (2) homogeneous goods downstream and (3) observable (two-part tariff) contracts. The result does not hold however, whenever any...