Data and Code for: The Competitive Impact of Vertical Integration by Multiproduct Firms
- Luco, Fernando (Texas A&M University)
- Marshall, Guillermo (University of British Columbia)
AbstractWe study the impact of vertical integration on pricing incentives in multiproduct industries. To do so, we exploit recent variation in vertical structure in the U.S. carbonated-beverage industry. While the elimination of double marginalization with vertical integration is normally characterized as procompetitive, economic theory predicts that it may cause anticompetitive price increases in multiproduct industries. We indeed find that vertical integration causes price decreases in products with eliminated double margins but price increases in the other products sold by the integrated firm. These results provide new evidence of anticompetitive effects of vertical mergers.
2007-01-01 / 2012-12-31Time Period: Mon Jan 01 00:00:00 EST 2007--Mon Dec 31 00:00:00 EST 2012
Luco, Fernando, and Guillermo Marshall. “The Competitive Impact of Vertical Integration by Multiproduct Firms.” American Economic Review, n.d.
Update Metadata: 2020-06-26 | Issue Number: 1 | Registration Date: 2020-06-26