Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Cleveland
Economic Review
The effects of vertical integration on competing input suppliers
R. Preston McAfee
Abstract

When a downstream firm buys an input supplier, it can reduce its costs of using that input. Other input suppliers typically respond by pricing more aggressively, given the demand reduction, which tends to lower input supply costs to other firms. Thus, a vertical merger may lower rivals' costs instead of raising them.


Download Full text
Download Full text
Cite this item
R. Preston McAfee, "The effects of vertical integration on competing input suppliers" , Federal Reserve Bank of Cleveland, Economic Review, issue Q I, pages 2-8, 1999.
More from this series
JEL Classification:
Subject headings:
For corrections, contact 4D Library ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal