vertical mergers. Using public data from the Comcast-Time Warner-Adelphia Merger Order of the Federal Communications Commission …

merger reduce rivals’ profits, making rivals’ exit a potentially serious concern. Rivals’ exit can fundamentally alter the … competitors that would otherwise exert downward pricing pressure. An exit-inducing vertical merger might reduce welfare even if it … is a welfare-enhancing merger absent exit. We present a theoretical framework to analyze vertical mergers that focuses on …