IDEAS home Printed from https://ideas.repec.org/p/por/fepwps/108.html
   My bibliography  Save this paper

Horizontal Merger and Vertical Differentiation

Author

Listed:
  • Cristina Barbot

    (CETE, Faculdade de Economia da Universidade do Porto)

Abstract

The effects of merger have usually been examined in the context of homogeneous goods, and are unambiguously established. This paper deals with merger in vertically differentiated industries, presenting two models, one with two firms, and one with three firms. Results depend on the number of previous firms in the industry, and on the qualities produced by the merging firms. However, some results about the welfare effects of merger differ from the standard ones, which is mainly due to the nature of competition in a vertical differentiation set.

Suggested Citation

  • Cristina Barbot, 2001. "Horizontal Merger and Vertical Differentiation," FEP Working Papers 108, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:108
    as

    Download full text from publisher

    File URL: http://www.fep.up.pt/investigacao/workingpapers/wp108.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scarpa, Carlo, 1998. "Minimum quality standards with more than two firms1," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 665-676, September.
    2. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-131, June.
    3. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bilotkach, Volodymyr & Fageda, Xavier & Flores-Fillol, Ricardo, 2013. "Airline consolidation and the distribution of traffic between primary and secondary hubs," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 951-963.
    2. Rosa Forte, 2004. "The relationship between foreign direct investment and international trade. Substitution or complementarity? A survey," FEP Working Papers 140, Universidade do Porto, Faculdade de Economia do Porto.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivier Bonroy, 2006. "Le standard de qualité minimale est-il un instrument socialement optimal ?. Une revue de littérature," Revue économique, Presses de Sciences-Po, vol. 57(1), pages 35-53.
    2. Mario Pezzino, 2010. "Hospital competition when patients have different willingness to pay for quality," Economics Discussion Paper Series 1014, Economics, The University of Manchester.
    3. Poret, Sylvaine, 2019. "Label wars: Competition among NGOs as sustainability standard setters," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 1-18.
    4. Birg, Laura & Voßwinkel, Jan S., 2014. "Minimum quality standards and compulsory labeling: More than the sum of its parts," University of Göttingen Working Papers in Economics 226, University of Goettingen, Department of Economics.
    5. Mario Pezzino, 2010. "Minimum Quality Standards with More Than Two Firms Under Cournot Competition," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(3), pages 26-45, August.
    6. S Lutz, 2005. "Can a Tariff on Foreign Competition Harm the Domestic Industry?," Economics Discussion Paper Series 0510, Economics, The University of Manchester.
    7. Jinji, Naoto & Toshimitsu, Tsuyoshi, 2013. "Strategic R&D policy in a quality-differentiated industry with three exporting countries," Japan and the World Economy, Elsevier, vol. 28(C), pages 132-142.
    8. Stefan Lutz & Mario Pezzino, 2010. "Mixed oligopoly, vertical product differentiation and fixed qualitydependent costs," Economics Discussion Paper Series 1015, Economics, The University of Manchester.
    9. Farzin, Y. H. & Akao, K. I., 2008. "Environmental Quality in a Differentiated Duopoly Facing a Minimum Quality Standard," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 271509, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. José A. Novo‐Peteiro, 2023. "Product design with attribute dependence," Manchester School, University of Manchester, vol. 91(4), pages 361-385, July.
    11. Francisco Martínez-Sánchez, 2016. "Versioning Goods and Joint Purchase: Substitution and Complementarity Strategies," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(5), pages 577-590.
    12. Tsuyoshi Toshimitsu, 2005. "Quality choice, the Coase problem, and a fixed cost function of quality: a note," Applied Economics Letters, Taylor & Francis Journals, vol. 12(7), pages 453-455.
    13. Soham Baksi & Pinaki Bose & Di Xiang, 2012. "Credence Goods, Consumer Misinformation, and Quality," Departmental Working Papers 2012-01, The University of Winnipeg, Department of Economics.
    14. Ya‐chin Wang & Leonard F.s. Wang, 2009. "Equivalence Of Competition Mode In A Vertically Differentiated Duopoly With Delegation," South African Journal of Economics, Economic Society of South Africa, vol. 77(4), pages 577-590, December.
    15. L. Lambertini & A. Tampieri, 2012. "On the Emergence of Overcompliance with Endogenous Environmental Standards and Patronising Consumers," Working Papers wp847, Dipartimento Scienze Economiche, Universita' di Bologna.
    16. Gabszewicz, J. & Turrini, A., 2000. "Workers' skills, product quality and industry equilibrium," International Journal of Industrial Organization, Elsevier, vol. 18(4), pages 575-593, May.
    17. Boccard Nicolas & Wauthy Xavier Y., 2010. "Ensuring Quality Provision through Capacity Regulation under Price Competition," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-27, October.
    18. Bouamra-Mechemache Zohra & Chaaban Jad, 2010. "Protected Designation of Origin Revisited," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-29, August.
    19. Nabin, Munirul H. & Nguyen, Xuan & Sgro, Pasquale M. & Chao, Chi-Chur, 2014. "Strategic quality competition, mixed oligopoly and privatization," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 142-150.
    20. Kurt R. Brekke & Luigi Siciliani & Odd Rune Straume, 2017. "Horizontal mergers and product quality," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(4), pages 1063-1103, November.

    More about this item

    Keywords

    Merger; vertical differentiation.;

    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:por:fepwps:108. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/fepuppt.html .

    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.