TY  - CHAP
AB  - This chapter investigates the structure of a simple vertical competition model by exhibiting the competitive links among assemblers, component producers, and integrated firms in a generalization of Cournot's model of the vertical integration by allowing any degree of competition among cohorts. Vertical integration in the model can take place by vertical mergers, forward or backward integration. Vertical integration is highly profitable and always reduces the price of the final product. The cost-raising strategy of an integrated firm buying out unneeded component producers is profitable and detrimental to consumers only if the firm faces no competition from other integrated firms.
VL  - 4
SN  - 978-1-84950-541-3, 978-0-4445-3190-2/1574-8715
DO  - 10.1016/S1574-8715(08)04003-7
UR  - https://doi.org/10.1016/S1574-8715(08)04003-7
AU  - Ruffin Roy J.
ED  - Sugata Marjit
ED  - Eden S.H. Yu
PY  - 2008
Y1  - 2008/01/01
TI  - Chapter 3 A Simple Vertical Competition Model: Structure and Performance
T2  - Contemporary and Emerging Issues in Trade Theory and Policy
T3  - Frontiers of Economics and Globalization
PB  - Emerald Group Publishing Limited
SP  - 49
EP  - 63
Y2  - 2024/04/25
ER  -