Extending Market Power through Vertical Integration

1999 ◽  
Author(s):  
Catherine de Fontenay ◽  
Joshua S. Gans
Keyword(s):  
Market Power ◽  
Vertical Integration

scholarly journals Vertical integration as a factor of competitiveness of agriculture

2012 ◽  
Vol 49 (No. 11) ◽  
pp. 520-525
Author(s):  
L. Grega
Keyword(s):  
Market Structure ◽  
Transaction Cost ◽  
Market Power ◽  
Vertical Integration ◽  
Production Cost ◽  
Food Sector ◽  
Factors Influencing ◽  
Horizontal Expansion

Vertical integration within agricultural and food sector is one of the decisive factors influencing market structure and competitiveness of agriculture. There are two groups of motives for vertical integration. Motive of efficiency is based on the effort to minimise production cost or transaction cost. Market power is not solely the result of horizontal expansion, but if variable inputs are considered, vertical integration may contribute to market power and so to growing share in consumer price. The article analyses and methodologically specifies these motives for vertical integration and determines possibilities of quantification of the effects of vertical integration.

scholarly journals Does Vertical Integration Effect Market Power? Evidence from U.S. Food Manufacturing Industries

2005 ◽  
Vol 37 (1) ◽  
pp. 263-276 ◽  
Author(s):  
Sanjib Bhuyan
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Empirical Analysis ◽  
Vertical Integration ◽  
Manufacturing Industries ◽  
Food Manufacturing ◽  
Food Industries ◽  
Integration Effect ◽  
Power Motive ◽  
Vertical Mergers

The issue of whether vertical integration can raise market power is hotly debated because firms have a market power-related incentive to integrate vertically. Using a sample of U.S. food manufacturing industries, this “market power” motive is empirically tested in this study. Empirical analysis shows that forward vertical ownership integration (or vertical mergers) did not increase food manufacturers' market power in the final product market. The study, however, shows that both market structure and conduct significantly influenced market power in the food industries.

Downstream Activities

2018 ◽  
Author(s):  
Olle Östensson ◽  
Anton Löf
Keyword(s):  
Market Power ◽  
Industrial Policy ◽  
Vertical Integration ◽  
Downstream Processing ◽  
Optimal Choice ◽  
Unintended Consequences ◽  
Extractive Industries ◽  
Production Economics ◽  
Processing Capacity ◽  
Extractive Industry

This chapter discusses the practical possibilities of achieving increased downstream processing in extractive industries and the policies that are commonly used for this purpose. It reviews the reasons why forward vertical integration is not always an optimal choice for extractive industry companies. It finds little support for the argument that differences in market power dictate the geography of downstream processing. The degree of vertical integration appears to be mainly driven by production economics. Market-determined processing margins fluctuate, which raises the risks of investing in downstream processing capacity. Industrial policy for downstream processing is discussed based on experiences in India, Indonesia, Zambia, and Tanzania. Results so far seem to indicate that unintended consequences dominate the outcomes.

Vertical integration and market power: A model-based analysis of restructuring in the Korean electricity market

Energy Policy ◽  
2010 ◽  
Vol 38 (7) ◽  
pp. 3710-3716 ◽  
Author(s):  
Derek W. Bunn ◽  
Maria Martoccia ◽  
Patricia Ochoa ◽  
Haein Kim ◽  
Nam-Sung Ahn ◽  
...  
Keyword(s):  
Market Power ◽  
Vertical Integration ◽  
Electricity Market ◽  
Model Based ◽  
Model Based Analysis
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