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Type	Working Paper
Scope	Discipline-based scholarship
Title	Asymmetric Vertical Integration
Organization Unit	Microeconomics, Industrial Organization, and Environmental Economics (Armin Schmutzler)
Authors	Stefan Buehler Armin Schmutzler
Language	English
Institution	University of Zurich
Series Name	Working paper series / Socioeconomic Institute
Number	No. 306
Date	2004
Abstract Text	We examine vertical backward integration in a reducedform model of successive oligopolies. Our key findings are: (i) There may be asymmetric equilibria where some firms integrate and others remain separated, even if firms are symmetric initially; (ii) Efficient firms are more likely to integrate vertically. As a result, integrated firms also tend to have a large market share. The driving force behind these findings are demand/mark-up complementarities in the product market. We also identify countervailing forces resulting from strong vertical foreclosure, upstream sales and endogenous acquisition costs.
Official URL	http://www.econ.uzh.ch/wp.html
Related URLs	https://www.zora.uzh.ch/id/eprint/1161/
PDF File	Download from ZORA
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