All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Tomomichi Mizuno, Koki Arai, Chizuru Ikeda and Nobufumi Nishimura
 
''Vertical integration with fixed cost in an upstream market: NSK/Amatsuji merger''
( 2009, Vol. 29 No.3 )
 
 
In this paper, we discuss the case of the integration between NSK and Amatsuji Steel Ball by using the successive oligopoly model. We show that the integration does not lead to input foreclosure. However, it leads to customer foreclosure, if the fixed cost of a rival firm in the upstream market is high. Even in the case of customer foreclosure, since the integration reduces the final goods price, it is always beneficial for consumers.
 
 
Keywords: NSK/Amatsuji merger, Vertical integration, Foreclosure
JEL: L4 - Antitrust Issues and Policies: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
 
Manuscript Received : Aug 11 2009 Manuscript Accepted : Sep 28 2009

  This abstract has been downloaded 259 times                The Full PDF of this paper has been downloaded 87715 times