Lommerud, Kjell Erik; Straume, Odd Rune; Sørgard, Lars - Wissenschaftszentrum Berlin für Sozialforschung (WZB) - 2002
We examine how a downstream merger affects input prices and, in turn, the profitability of such a merger under Cournot competition with differentiated products. Input suppliers can be interpreted as ordinary upstream firms, or trade unions organising workers. If the input suppliers are...