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Collusion et possibilité d’entrée en aval dans une industrie verticalement intégrée

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  • Éric Avenel
  • Stéphane Caprice

Abstract

We analyze the sustainability of an agreement in the presence of a threat of entry in a context where incumbent firms are vertically integrated. Entrants depend on integrated firms for their supplies. While the entry leaves collusion profits unchanged, we show that deviation profits are also unchanged and that entry lowers profits in punishment periods. In this sense, the possibility of entry facilitates collusion between integrated firms.

Suggested Citation

  • Éric Avenel & Stéphane Caprice, 2018. "Collusion et possibilité d’entrée en aval dans une industrie verticalement intégrée," Revue économique, Presses de Sciences-Po, vol. 69(1), pages 5-28.
    • Handle: RePEc:cai:recosp:reco_pr2_0110
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    1. Marc Bourreau & Johan Hombert & Jerome Pouyet & Nicolas Schutz, 2011. "Upstream Competition between Vertically Integrated Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 59(4), pages 677-713, December.
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    Cited by:

    1. N. M. Rozanova, 2021. "Methodological Issues of Modern Competition Policy," Studies on Russian Economic Development, Springer, vol. 32(5), pages 492-498, September.

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    More about this item

    Keywords

    collusion; vertical integration; entry;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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