DP9617 Backward integration, forward integration, and vertical foreclosure

Author(s): Yossi Spiegel
Publication Date: August 2013
Keyword(s): backward integration, consumer surplus, controlling and passive integration, forward integration, investment, vertical foreclosure, vertical integration
JEL(s): D43, L41
Programme Areas: Industrial Organization
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=9617

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.