Endogenous industry structure in vertical duopoly

Halonen, Maija (1994) Endogenous industry structure in vertical duopoly. EI (7). Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

This paper examines integration decisions of successive duopolists. It is shown that qualitatively the same pattern of integration emerges whether there is Cournot or Bertrand competition in the input market. The degree of integration in the industry is increasing in the size of the downstream market and decreasing in the average marginal cost of the industry and in the fixed integration cost. There jis a tendency for partial integration when one upstream firm is relatively efficient compared to its rival.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://sticerd.lse.ac.uk
Additional Information:	© 1994 Maija Halonen
Divisions:	STICERD
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Date Deposited:	09 Jul 2008 09:34
Last Modified:	13 Sep 2024 19:36
URI:	http://eprints.lse.ac.uk/id/eprint/6776

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