Wang, Kuang-Cheng; Koo, Hui-Wen - In: Journal of Economic Integration 20 (2005), pp. 366-382
This paper considers a successive oligopoly model in which a vertically-intergrated firm(VI firm) can buy or sell intermediate goods. We find that when there are only a small number of VI firms in the market, they tend to buyor even to store up intermediate goods. In our setting, a vertical...