DP9617 | Backward integration, forward integration, and vertical foreclosure

Author(s)

Yossi Spiegel

Publication Date

25/08/2013

JEL Code(s)

  • D43, L41

Keyword(s)

  • vertical integration, Backward integration, Forward integration, vertical foreclosure, Controlling and passive integration, investment, Consumer surplus

Programme Area(s)

  • Industrial Organization

Abstract

I show that partial vertical integration may either alleviates or exacerbate the concern for vertical foreclosure relative to full vertical integration and I examine its implications for consumer welfare.