An essential input price that is “too high” relative to the downstream price leads to inefficient foreclosure and one …

We investigate the efficiency, foreclosure, and collusion rationales for vertical integration in a large sample of … holdup) and provides incentives to undertake relationship-specific investments. In contrast, the foreclosure and collusion … rationales suggest that vertical integration is anticompetitive in nature. Specifically, the foreclosure argument suggests that …

This paper analyzes if vertical foreclosure can emerge as an equilibrium outcome of an infinitely repeated game …. Foreclosure is profitable due to a 'raising rival's costs' effect but it is not a Nash equilibrium of the static game. The results … are that foreclosure is in fact a subgame perfect Nash equilibrium of the repeated game, and it may facilitate collusion …