A comment on 'Vertical mergers and downstream spatial competition with different product varieties'

摘要

The aim of this paper is to revise and correct the results obtained in Beladi et al. (2008). Specifically, we prove that in the pre-merger case, Nash equilibrium locations are socially optimal, whereas a vertical merger will relocate downstream firms by making them move to the right of their old socially optimal positions while keeping their in-between distance intact. (C) 2016 Elsevier B.V. All rights reserved.