Vertical Integration: Does Product Price Rise or Fall?

This article analyzes the effect on product price of vertical merger between an upstream monopoly seller of a raw material and downstream competitive firms using this input, together with others, to produce a product. Popular wisdom is that such forward extension of monopoly power causes consumer pr...

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Bibliographic Details

Published in:	American Economic Review Vol. 71; no. 3; pp. 334 - 347
Main Author:	Westfield, Fred M.
Format:	Article
Published:	American Economic Association Jun81
Subjects:	Consumer goods Vertical integration Mergers & acquisitions Monopolies Industrial organization (Economic theory) Prices Price inflation Economic equilibrium Economic demand
Online Access:	View this record in EBSCOhost