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Article Dans Une Revue Economics Bulletin Année : 2007

Forward vertical integration : the fixed-proportion case revisited

Résumé

Assuming a fixed-proportion downstream production technology, partial forward integration by an upstream monopolist may be observed whether the monopolist is advantaged or disadvantaged cost-wise relative to fringe firms in the downstream market. Integration need not induce cost-predation and the profits of the fringe may increase. The output price falls and welfare unambiguously rises.
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Dates et versions

hal-02653842 , version 1 (29-05-2020)

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  • HAL Id : hal-02653842 , version 1
  • PRODINRA : 11765

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Olivier Bonroy, Bruno Larue. Forward vertical integration : the fixed-proportion case revisited. Economics Bulletin, 2007, 12 (25), pp.1-9. ⟨hal-02653842⟩
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