The Competitive Impact of Vertical Integration by Multiproduct Firms

• 成果类型: Article
• 署名作者: Luco, Fernando; Marshall, Guillermo
• 署名单位: Texas A&M University System; Texas A&M University College Station; University of British Columbia
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20180071
• 发表日期: 2020
• 页码: 2041-2064
• 关键词: foreclosure; mergers; manufacturers; exclusivity; CONTRACTS; inference; retailers; PARADOX; welfare; price

摘要

We study the impact of vertical integration on pricing incentives in multiproduct industries. To do so, we exploit recent variation in vertical structure in the US carbonated-beverage industry. While the elimination of double marginalization with vertical integration is normally characterized as procompetitive, economic theory predicts that it may cause anticompetitive price increases in multiproduct industries. We indeed find that vertical integration causes price decreases in products with eliminated double margins but price increases in the other products sold by the integrated firm. These results provide new evidence of anticompetitive effects of vertical mergers.