Hunold, Matthias; Röller, Lars-Hendrik; Stahl, Konrad - Zentrum für Europäische Wirtschaftsforschung (ZEW) - 2012
We analyze the effects of downstream firms' acquisition of pure cash flow rights in an efficient upstream supplier when all firms compete in prices. With an acquisition, downstream firms internalize the effects of their actions on their rivals' sales. Double marginalization is enhanced. Whereas...
