IDEAS home Printed from https://ideas.repec.org/h/eme/rlwezz/s0193-589520180000028008.html
   My bibliography  Save this book chapter

Mandatory Upstream Inputs and Upward Pricing Pressure: Implications for Competition Policy☆

In: Healthcare Antitrust, Settlements, and the Federal Trade Commission

Author

Listed:
  • Timothy J. Tardiff
  • Dennis L. Weisman

Abstract

The competition and regulatory economics literature has developed indicators that detect whether a vertically integrated provider (VIP) is engaging in market exclusion in the form of an anticompetitive price squeeze and non-price discrimination leading to sabotage of downstream competitors. Weisman integrates these indicators by developing a safe-harbor range within which a profit-maximizing VIP engages in neither form of market exclusion. Downstream retail competition that depends on the VIP’s inputs imposes upward pricing pressure on the downstream prices, with the amount of such pressure increasing as the downstream products become more homogeneous (closer substitutes). We analyze the implications of upward pricing pressure for antitrust evaluations of a duty to deal, regulatory policies mandating wholesale inputs for entrants, and vertical mergers. We find, for example, no basis to oppose a merger in which the VIP was previously required to supply inputs to rivals at unregulated prices.

Suggested Citation

  • Timothy J. Tardiff & Dennis L. Weisman, 2018. "Mandatory Upstream Inputs and Upward Pricing Pressure: Implications for Competition Policy☆," Research in Law and Economics, in: Healthcare Antitrust, Settlements, and the Federal Trade Commission, volume 28, pages 401-421, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rlwezz:s0193-589520180000028008
    DOI: 10.1108/S0193-589520180000028008
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/S0193-589520180000028008/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S0193-589520180000028008/full/epub?utm_source=repec&utm_medium=feed&utm_campaign=repec&title=10.1108/S0193-589520180000028008
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S0193-589520180000028008/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://libkey.io/10.1108/S0193-589520180000028008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Vertical integration; exclusionary behavior; duty to deal; competition policy; mergers; antitrust; L4; L51; L96;
    All these keywords.

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:rlwezz:s0193-589520180000028008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.