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α: calibrated so average coauthorship-adjusted count equals average raw count
Abstract The 2020 Vertical Merger Guidelines assume that the elimination of double marginalization caused by vertical integration is procompetitive. A body of research shows that this assumption may fail to hold in multiproduct industries. In this paper, we present a model of a vertical supply chain to analyze equilibrium effects of vertical integration, which we use to shed light on when an elimination of double marginalization may fail to be procompetitive in multiproduct industries. In particular, we discuss diversion ratios as a tool for diagnosing anticompetitive effects.