VERTICAL CONTRACTING WHEN COMPETITION FOR ORDERS PRECEDES PROCUREMENT*

A-Tier
Journal: Journal of Industrial Economics
Year: 2007
Volume: 55
Issue: 2
Pages: 325-346

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper reverses the standard order between input supply negotiations and downstream competition and assumes that competition for orders takes place prior to procurement of inputs in a vertical chain. It is found that oligopolistically competitive outcomes will result despite the presence of an upstream monopolist. Here, vertical integration is a means by which the monopolist can leverage its market power downstream to the detriment of consumers. However, it does so, not by foreclosing on independent downstream firms, but by softening the competitive behaviour of its own integrated units.

Technical Details

RePEc Handle
repec:bla:jindec:v:55:y:2007:i:2:p:325-346
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25