We re-examine the “buyer power” defense to horizontal mergers using models of imperfect competition in which input prices are set before goods prices. We derive a measure of unilateral incentives to adjust input prices after a downstream merger, Input Pricing Pressure, and we use it to show...

Theoretical reasoning shows that spatial effects of transport cost reductions may crucially depend on market structures in the tradables sector (degree of market power, strength of economies of scale, free or no free entry). The aim of this paper is to compare empirically the effects of...