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A comment on ‘Vertical mergers and downstream spatial competition with different product varieties’

Author

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  • Eleftheriou, Konstantinos
  • Michelacakis, Nickolas J.

Abstract

The aim of this paper is to revise and correct the results obtained in Beladi et al. (2008). Specifically, we prove that in the pre-merger case, Nash equilibrium locations are socially optimal, whereas a vertical merger will relocate downstream firms by making them move to the right of their old socially optimal positions while keeping their in-between distance intact.

Suggested Citation

  • Eleftheriou, Konstantinos & Michelacakis, Nickolas J., 2016. "A comment on ‘Vertical mergers and downstream spatial competition with different product varieties’," Economics Letters, Elsevier, vol. 143(C), pages 84-86.
    • Handle: RePEc:eee:ecolet:v:143:y:2016:i:c:p:84-86
    DOI: 10.1016/j.econlet.2016.03.011
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    Citations

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    Cited by:

    1. Eleftheriou, Konstantinos & Michelacakis, Nickolas J. & Papavassiliou, Vassilios G., 2016. "Addendum to Eleftheriou and Michelacakis (2016)," Economics Letters, Elsevier, vol. 148(C), pages 53-54.
    2. Konstantinos Eleftheriou & Nickolas J. Michelacakis & Vassilios G. Papavassiliou, 2016. "A comment on 'Cross-border merger, vertical structure, and spatial competition'," Open Access publications 10197/8114, Research Repository, University College Dublin.
    3. Konstantinos Eleftheriou & Nickolas J. Michelacakis, 2020. "Location decisions and welfare under spatial price discrimination," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1202-1210, October.
    4. Eleftheriou, Konstantinos & Michelacakis, Nickolas, 2016. "A Comment on "Sequential Spatial Competition in Vertically Related Industries with Different Product Varieties"," MPRA Paper 73485, University Library of Munich, Germany.
    5. Eleftheriou, Konstantinos & Michelacakis, Nickolas, 2017. "Spatial Price Discrimination and Privatization on Vertically Related Markets," MPRA Paper 76964, University Library of Munich, Germany.

    More about this item

    Keywords

    Price discrimination; Spatial competition; Merger;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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