Working Paper
Upward Pricing Pressure of Mergers Weakening Vertical Relationships
Gregor Langus, Vilen Lipatov
CESifo, Munich, 2015
CESifo Working Paper No. 5692
CESifo, Munich, 2015
CESifo Working Paper No. 5692
We modify the UPP test of Farrell and Shapiro (2010) to take into account the possibility that a merger weakens (or eliminates) a vertical supply relationship. After deriving a general effect of the merger, we provide an example of simple estimation strategy when only prices, costs and market shares are available as a snapshot.
CESifo Category
Industrial Organisation
Empirical and Theoretical Methods
Industrial Organisation
Empirical and Theoretical Methods
Keywords: UPP, supply relationship, merger effects
JEL Classification: K210, L490