The welfare effects of upstream mergers in the presence of downstream entry barriers

• 成果类型: Article
• 署名作者: Antelo, Manel; Bru, Lluis
• 署名单位: Universidade de Santiago de Compostela; Universitat de les Illes Balears
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2006.00413.x
• 发表日期: 2006
• 页码: 1269-1294
• 关键词: Vertical Integration; countervailing power

摘要

We examine the incentives for upstream firms to consolidate horizontally and the impact of this process on industry performance, when there are downstream entry barriers and firms negotiate bilaterally. In the short run, consumers are not worse off with upstream mergers, since consolidation only results in a redistribution of industry rents. In the long run, consumers are better off after upstream mergers, since they induce more entry into that segment. When social welfare is evaluated, a limit on upstream consolidation may prevent excessive entry; but upstream entry can be sometimes insufficient, if the retailers' intrinsic bargaining power is excessive.