Moresi, Serge; Reitman, David; Salop, Steven C.; … - 2021
monopolist has incomplete information and cannot implement the monopoly outcome: The expected pre-merger equilibrium price of the … downstream product is lower than the monopoly price. After a vertical merger, the equilibrium input price that is charged to the …, respectively. However, in all cases the equilibrium price of the downstream product increases to the monopoly price. Therefore, the …