monopolist has incomplete information and cannot implement the monopoly outcome: The expected pre-merger equilibrium price of the … downstream product is lower than the monopoly price. After a vertical merger, the equilibrium input price that is charged to the … all of the monopoly profit: The merger causes production inefficiency (when the downstream rival has a relatively small …

inputs: a monopolized input and a competitively supplied input. Unlike with fixed-proportions technologies, a merger between … sufficiently low then welfare declines, while rising elsewhere despite foreclosure. The merger also can reduce welfare under a CES … monotonic in the monopoly input’s share of downstream costs …