choice of post-merger integration level from the perspective of price and quality competition. We develop a game … merger is adopted, the post-merger firm makes centralized price and quality decisions to maximize the total profit; while if …. Third, a merger does not necessarily increase price or reduce quality. Furthermore, we characterize the conditions under …

' ability to collude in a dynamic game of price competition with homogeneous goods. We find that passive backward acquisitions … collusive price that is set by the cartel to increase the acquirer's profit from its claim on the upstream margin. …