Research on vertical integration in oligopoly, inventory, and multitier industry

2015 Fiscal Year Final Research Report

• Project/Area Number: 25780167
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Economic policy
• Research Institution: Kobe University (2014-2015); University of Nagasaki (2013)
• Principal Investigator: Mizuno Tomomichi 神戸大学, 経済学研究科(研究院), 准教授 (60589315)
• Project Period (FY): 2013-04-01 – 2016-03-31
• Keywords: 垂直的市場 / 複数層市場 / 垂直的統合 / 競争政策

Outline of Final Research Achievements

We construct models with multitier market and obtain the following main results. First, we consider a multitier market where firms vertically integrate. Then, we show that a vertical integration decreases market prices in lower-tier markets and the price effects become smaller if we take a market far away from the market with vertical integration. Second, we construct a model where downstream firms have pricing power in an upstream market. Then, we show that an increase in the pricing power of upstream firms raises all prices in the market and that of downstream firms always decreases the upstream price and may decreases the downstream price.

Free Research Field

産業組織論