Working Paper
Non-horizontal mergers with investments into compatibility
Gregor Langus, Vilen Lipatov, Jorge Padilla
CESifo, Munich, 2019
CESifo Working Paper No. 7617
CESifo, Munich, 2019
CESifo Working Paper No. 7617
We set up a model to analyze the effects of mergers between sellers of complementary components where firms invest in compatibility and can engage in bundling. We consider the impact of merger on prices, investment and consumer surplus. We also analyse when the merged firm may have an incentive and ability to foreclose rivals.
CESifo Category
Industrial Organisation
Industrial Organisation
JEL Classification: L130, L410