Evaluating the Evidence on Vertical Mergers

Beck, Marissa; Morton, Fiona Scott

doi:10.1007/s11151-021-09832-z

Cited by 17 publications

(1 citation statement)

References 60 publications

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“…This insight can be traced to Coase (1937) and Williamson (1973). The economic impact of vertical integration has been explored in some detail by Lafontaine and Slade (2007, 2021) and by Beck and Scott Morton (2021).…”

Section: Vertical Integration and Market Powermentioning

confidence: 99%

Vertical integration to avoid monopsonistic exploitation

Alderman

Blair

2022

Manage Decis Econ

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For decades, the suppliers of fed cattle have complained about monopsonistic exploitation by the dominant meatpackers. Recently, a group of ranchers and feedlot operators joined forces to build their own meatpacking plant in an effort to avoid such exploitation. In this context, we show that forward vertical integration by the suppliers of fed cattle will increase their profits while increasing output and lowering prices for consumers. In addition, we show that vertical integration improves both consumer welfare and social welfare. We also examine the use of a joint sales agency, which is an economically equivalent alternative to vertical integration.

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Section: Vertical Integration and Market Powermentioning

confidence: 99%

Vertical integration to avoid monopsonistic exploitation

Alderman

Blair

2022

Manage Decis Econ

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Successive Monopoly, Bilateral Monopoly and Vertical Mergers

Angerhofer

Blair

2021

Rev Ind Organ

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The 2020 Vertical Merger Guidelines

Blair

2021

Rev Ind Organ

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On June 30, 2020, the Department of Justice and the Federal Trade Commission replaced the 1984 Non-Horizontal Merger Guidelines with the 2020 Vertical Merger Guidelines (VMG). In the years between these two enforcement policy statements, there has been an avalanche of academic literature that addressed the antitrust law and economics of vertical integration, vertical mergers, and economically equivalent vertical contracts. To one extent or another, this burgeoning literature has informed the 2020 VMG. But have the new VMG gotten it right? This Special Issue will go a long way in answering that question. Some of the contributions offer an assessment of the 2020 VMG, while others contain analyses of economic issues that were prompted by the publication of the VMG.

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Evaluating the Evidence on Vertical Mergers

Cited by 17 publications

References 60 publications

Vertical integration to avoid monopsonistic exploitation

Vertical integration to avoid monopsonistic exploitation

Successive Monopoly, Bilateral Monopoly and Vertical Mergers

The 2020 Vertical Merger Guidelines

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