Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Social and Behavioral Sciences
Vertical Integration And Competition Between Networks, Catherine De Fontenay, Joshua Gans
Vertical Integration And Competition Between Networks, Catherine De Fontenay, Joshua Gans
Catherine de Fontenay
No abstract provided.
Vertical Integration In The Presence Of Upstream Competition, Catherine De Fontenay, Joshua Gans
Vertical Integration In The Presence Of Upstream Competition, Catherine De Fontenay, Joshua Gans
Catherine de Fontenay
We analyze vertical integration to compare outcomes under upstream competition and monopoly. This is done in a model based on the property rights approach to firm boundaries and where multilateral negotiations are modeled using a fully specified, non-cooperative bargaining game. We demonstrate that vertical integration can alter the joint payoff of integrating parties in ex post bargaining; however, this bargaining effect is stronger for firms integrating under upstream competition than upstream monopoly. In contrast, where integration internalizes competitive externalities, ex post monopolization is more likely to occur under upstream monopoly than upstream competition.