We extend the theory of bilateral vertical contracting to a double moral hazard setting where upstream and downstream … downstream products are either sufficiently distant or sufficiently close substitutes, a vertical merger benefits the merging … low as revealed, for example, by a high ratio of R&D investments to sales. We apply the model to a vertical merger in the …

A vertical merger model represents a complex system built on (i) a network of e.g., upstream manufacturers and … bargaining models and and that how parties bargain, and over what, can almost pre-determine merger effects. This paper is … accompanied by an online vertical merger simulator designed to help economists and enforcers simulate vertical mergers, similar to …