Data and Code for: The Competitive Impact of Vertical Integration by Multiproduct Firms

Resource Type
Dataset : observational data, program source code
  • Luco, Fernando (Texas A&M University)
  • Marshall, Guillermo (University of British Columbia)
Publication Date
Free Keywords
vertical integration; multiproduct firms; carbonated-beverage industry
  • Abstract

    We 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.
Temporal Coverage
  • 2007-01-01 / 2012-12-31
    Time Period: Mon Jan 01 00:00:00 EST 2007--Mon Dec 31 00:00:00 EST 2012
Geographic Coverage
  • United States
Sampled Universe
The prices of carbonated beverages in the United States between the years 2007 and 2012, measured at the product--store--week level.
  • 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