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and thereby can lead to market foreclosure. Based on this theory, the article reviews a merger case in the financial …
Persistent link: https://www.econbiz.de/10011649373
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The hypothesis that vertically integrated firms have an incentive to foreclose the input market because foreclosure …. A powerful argument against this hypothesis is that, absent commitment, such foreclosure cannot occur in Nash …
Persistent link: https://www.econbiz.de/10010302573
and thereby can lead to market foreclosure. Based on this theory, the article reviews a merger case in the financial …
Persistent link: https://www.econbiz.de/10011649478
In the beginning of fixed network liberalisation in Europe in the late 1990s, the main concern of regulators was to lower calls prices. This was done by introducing wholesale regulation and promoting service based competition. Some years later, the concern of some regulators turned from too high...
Persistent link: https://www.econbiz.de/10010265881
This paper analyzes the impact vertical integration has on upstream collusion when the price of the input is linear. As a first step, the paper derives the collusive equilibrium that requires the lowest discount factor in the infinitely repeated game when one firm is vertically integrated. It...
Persistent link: https://www.econbiz.de/10010266966
input foreclosure or customer foreclosure. We show that the incentives to foreclose can be higher, equal, or even lower with …
Persistent link: https://www.econbiz.de/10013385143
develop a novel framework for directly evaluating the strategic foreclosure effect and the effciency benefits associated with … vertical integration. Applying this framework, we find significant evidence for both vertical foreclosure and effciency … benefits. The foreclosure effect dominates the effciency benefits for more than half of the refining firms in the sample …
Persistent link: https://www.econbiz.de/10010315497
identify countervailing forces resulting from strong vertical foreclosure, upstream sales and endogenous acquisition costs. …
Persistent link: https://www.econbiz.de/10010315532