Welfare decreasing endogenous mergers between producers of complementary goods

Non-Horizontal Mergers with Investments into Compatibility

“…Alvisi et al (2011) analyse the consequences of a merger between strict complements in a setting with exogenous quality differentiation. Barros et al (2018) find that welfare-decreasing mergers are possible in a setting with a monopolist and two vertically-differentiated producers premerger. Flores-Fillol and Moner-Colonques (2011) study the mergers in Choi (2008) setting with additional feature that standalone components bring utility for some consumers.…”