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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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. However, we also find foreclosure in the downstream market if the potential degree of horizontal product differentiation of … the entrant is low. Under ownership unbundling, investment incentives are lower but there is never foreclosure of the …
Persistent link: https://www.econbiz.de/10008872262
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/10008694129
This paper analyses the impact of competition among downstream firms on an upstream firm's payoff and on its incentive to vertically integrate when firms on both segments negotiate optimal contracts. We argue that tougher competition decreases the downstream industry profit, but improves the...
Persistent link: https://www.econbiz.de/10010707301
vertically integrated firms. We review both predation and foreclosure theories, as well as the mere exploitation of upstream … market power. We show that foreclosure provides an appropriate framework in the case of an unregulated firm, whereas a firm …
Persistent link: https://www.econbiz.de/10011083910
This paper analyses the impact of competition among downstream firms on an upstream firm's payoff and on its incentive to vertically integrate when firms on both segments negotiate optimal contracts. We argue that tougher competition decreases the downstream industry profit, but improves the...
Persistent link: https://www.econbiz.de/10009645004
We analyse the impact of an entry threat at the downstream level on the ability of a pair of vertically integrated incumbents to collude. We present an original model of horizontal product differentiation on the final market and characterize the structures of this market for which an entry...
Persistent link: https://www.econbiz.de/10009650734
supplier's ability to interact with unintegrated competitors. Vertical integration may thus lead to input foreclosure, thereby … foreclosure arises in the case of downstream bottlenecks. …
Persistent link: https://www.econbiz.de/10008794361