Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 20 February 2020

Abstract and Keywords

This chapter traces the history of the interplay between the antitrust treatment of vertical mergers and the economics literature on the competitive effects of vertical mergers. Vertical mergers create upward pricing pressure (through foreclosure effects) and downward pricing pressure (through the elimination of double marginalization). Even when the net pricing pressure is positive, however, antitrust agencies might find it difficult to measure the effects sufficiently precisely and reliably to support a successful antitrust merger challenge. They might have more success challenging vertical mergers of dominant firms at successive stages on the grounds that the dominant firm at one stage constrains market power at the adjacent stage by threatening either to enter or to sponsor entry.

Keywords: vertical mergers, vertical foreclosure, double marginalization, post-Chicago economics, upward pricing pressure, single-monopoly profit

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.