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Horizontal and Vertial Integration in the Presence of Research Spillovers

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  • Stefania Borla

Abstract

We investigate how different types of merger affect input prices, research levels and equilibrium profits in vertical market structures when there is research activity in the upstream market that spills over to the downstream retailers. To do so, we develop a very simple model where three downstream Cournot oligopolists are served by monopolist plant-specific input suppliers. We consider a situation in which both vertical and horizontal integration are feasible and we investigate which equilibrium structures are likely to emerge following an initial merger between two units.

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  • Stefania Borla, "undated". "Horizontal and Vertial Integration in the Presence of Research Spillovers," Discussion Papers 04/12, Department of Economics, University of York.
    • Handle: RePEc:yor:yorken:04/12
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    References listed on IDEAS

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    More about this item

    Keywords

    integration; researh spillovers; sequential mergers;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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