In two-sided markets a platform allows consumers and sellers to interact by creating sub-markets within the platform marketplace. For example, Amazon has sub-markets for all of the different product categories available on its site, and smartphones have sub-markets for different types of...

We review the Chicago school's single monopoly profit theory whereby an upstream monopolist cannot increase its profits through vertical integration as it has sufficient market power anyways. In our model the dominant supplier has full bargaining power and uses observable two-part tariffs. We...

Over the past fifty years antitrust theorists and economists have advanced several pro-competitive explanations for minimum resale price maintenance [RPM]. Additionally, scholars have argued that non-price vertical restraints (such as territorial exclusivity) and RPM have similar effects on...

We present a simple model describing the relationship between two main effects of vertical integration - raising rivals' costs (RRC) and elimination of double marginalization (EDM) - in a differentiated product setting. We find that RRC and EDM are intrinsically linked: the same force creates an...

This paper analyzes vertical integration incentives in a bilaterally duopolistic industry where input market outcomes are determined by bargaining. Vertical integration incentives are a combination of horizontal integration incentives up- and downstream and depend on the strength of...

We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core input to an external firm, transforming the licensee into its input supplier. We find that the incumbent opts for licensing even when licensing also transforms the licensee into...

We study the incentives for horizontal upstream mergers in a quantity-setting vertically related industry, under bargain and endogenous contract types. We show that the contract types used could have important consequences for the equilibrium market structure and vice versa. If it is the...

This paper asks whether a privately informed retailer may have an incentive to share its marketing data with the manufacturer, in a way that would enable the manufacturer to gain ex-post, but non-contractible information. I consider an infinitely repeated dynamic vertical relations with adverse...

In this paper we analyze the problem of the enforcement of incomplete contracts with endogenous outside options. Some of the equilibria we outline may reverse one of the main results presented in the standard literature. We then revisit the literature on the highly debated Fisher Body/General...

This paper introduces a novel method for examining the effects of vertical integration. The basic idea is to estimate the parameters of a vertical entry game. By carefully specifying firms' payoff equations and constructing appropriate tests, it is possible to use estimates on rival profit...