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Downstream Competition, Foreclosure, and Vertical Integration
Chemla, Gilles - C.E.P.R. Discussion Papers - 2000
This paper analyses the impact of competition among downstream firms on an upstream firm's payoff and on its incentive … to vertically integrate when firms on both segments negotiate optimal contracts. We argue that tougher competition … decreases the downstream industry profit, but improves the upstream firm's negotiation position. In particular, the upstream …
Persistent link: https://www.econbiz.de/10005497922
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Vertical Merger, Collusion, and Disruptive Buyers
Nocke, Volker; White, Lucy - C.E.P.R. Discussion Papers - 2010
In a repeated game setting of a vertically related industry, we study the collusive effects of vertical mergers. We show that any vertical merger facilitates upstream collusion, no matter how large (in terms of capacity or size of product portfolio) the integrated downstream buyer. But a...
Persistent link: https://www.econbiz.de/10008468660
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Bilateral Market Power and Vertical Integration in the Spanish Electricity Spot Market
Kühn, Kai-Uwe; Machado, Matilde Pinto - C.E.P.R. Discussion Papers - 2004
The Spanish electricity spot market is highly concentrated both on the seller and the buyer side. Furthermore, unlike electricity spot markets in other deregulated electricity systems, large buyers and sellers are typically vertically integrated. This allows both large net sellers and large net...
Persistent link: https://www.econbiz.de/10005123592
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Vertical Integration and Distance to Frontier
Acemoglu, Daron; Aghion, Philippe; Zilibotti, Fabrizio - C.E.P.R. Discussion Papers - 2002
We construct a model where the equilibrium organization of firms changes as an economy approaches the world technology frontier. In vertically integrated firms, owners (managers) have to spend time both on production and innovation activities, and this creates managerial overload, and...
Persistent link: https://www.econbiz.de/10005123937
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Vertical Integration and Technology: Theory and Evidence
Acemoglu, Daron; Aghion, Philippe; Griffith, Rachel; … - C.E.P.R. Discussion Papers - 2005
these predictions using plant-level data for the UK manufacturing sector. Most importantly, and consistent with theory, we … the likelihood of vertical integration. Also consistent with theory, both these effects are stronger when the supplying …
Persistent link: https://www.econbiz.de/10005123944
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Optimal Integration: Strategies for the Multinational Firm
Grossman, Gene; Helpman, Elhanan; Szeidl, Adam - C.E.P.R. Discussion Papers - 2004
We examine integration strategies of multinational firms that face a rich array of choices of international organization. Each firm in an industry must provide headquarter services from its home country, but can produce its intermediate inputs and conduct assembly operations in one or more of...
Persistent link: https://www.econbiz.de/10005124092
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Unlocking Value: Equity Carve outs as Strategic Real Options
Perotti, Enrico C; Rossetto, Silvia - C.E.P.R. Discussion Papers - 2007
Equity carve outs, the partial listing of a corporate subsidiary, appear to be transitory arrangements, usually dissolved within a few years by either a complete sale or a buy back. Why do firms perform expensive listings just to reverse them thereafter? We interpret carve outs as strategic...
Persistent link: https://www.econbiz.de/10005124241
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Subadditivity Tests for Network Separation with an Application to US Railroads
Ivaldi, Marc; McCullough, Gerard - C.E.P.R. Discussion Papers - 2004
and competition policy. We illustrate them with an analysis of US freight railroads for the period 1978-2001 and find both …
Persistent link: https://www.econbiz.de/10005067525
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The Cost and Benefits of Ownership: A Theory of Vertical and Lateral Integration
Grossman, Sanford J; Hart, Oliver - C.E.P.R. Discussion Papers - 1985
complete contracts. We define the firm as being composed of its assets. We present a theory of costly contracts which …
Persistent link: https://www.econbiz.de/10005497709
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Foreclosure with Incomplete Information
White, Lucy - C.E.P.R. Discussion Papers - 2003
We investigate the robustness of the new foreclosure doctrine and its associated welfare implications to the introduction of incomplete information. In particular, we let the upstream firm’s marginal cost be private information, unknown to the downstream firms. The previous literature has...
Persistent link: https://www.econbiz.de/10005498007