Vertical Foreclosure with Product Choice and Allocation
Title | Vertical Foreclosure with Product Choice and Allocation PDF eBook |
Author | Jaedo Choi |
Publisher | |
Pages | 41 |
Release | 2017 |
Genre | |
ISBN |
We investigate a vertically integrated theater's contract and screen allocation decisions in a movie industry characterized by demand uncertainty, price uniformity, and revenue-sharing contracts. Based on a simple theoretical model that describes the decisions of theaters and movie distributors, we derive two mechanisms of foreclosure behavior, termed the selection and allocation effects herein. Our empirical results suggest that integrated theaters not only impose a higher quality standard for movies from independent distributors but also play their affiliated movies more. Further, the magnitude of the foreclosure effects varies by movie quality.
Vertical Foreclosure with the Choice of Input Specification
Title | Vertical Foreclosure with the Choice of Input Specification PDF eBook |
Author | Jay Pil Choi |
Publisher | |
Pages | 40 |
Release | 1996 |
Genre | Equilibrium (Economics) |
ISBN |
Vertical Foreclosure with the Choice of Input Specifications
Title | Vertical Foreclosure with the Choice of Input Specifications PDF eBook |
Author | Jay Pil Choi |
Publisher | |
Pages | 0 |
Release | 1998 |
Genre | |
ISBN |
This paper develops an equilibrium model of vertical foreclosure with the choice of input specifications. In this model, vertical foreclosure occurs as the upstream division of the integrated firm makes a specialized input for its sister downstream division while it would, as an independent firm, provide a generalized input. The changes in incentives with vertical integration can be explained by the externalities the choice of a specialized input entails; vertical integration allows the upstream firm to internalize the benefit of raising the rival firm's costs at the downstream level. The choice of a specialized input by the integrated firm serves as a natural commitment mechanism not to supply the rival downstream firms and, thus, enables us to dispense with the controversial price commitment assumption in the literature. We derive conditions for equilibrium vertical foreclosure to occur and discuss its welfare consequences.
Empirical Evidence on Vertical Foreclosure
Title | Empirical Evidence on Vertical Foreclosure PDF eBook |
Author | Eric S. Rosengren |
Publisher | |
Pages | 38 |
Release | 1993 |
Genre | Consolidation and merger of corporations |
ISBN |
Vertical Foreclosure, Technological Choice and Entry on the Intermediate Market
Title | Vertical Foreclosure, Technological Choice and Entry on the Intermediate Market PDF eBook |
Author | Eric Avenel |
Publisher | |
Pages | |
Release | 2000 |
Genre | |
ISBN |
Vertical Foreclosure
Title | Vertical Foreclosure PDF eBook |
Author | |
Publisher | |
Pages | 106 |
Release | 2008 |
Genre | Business failures |
ISBN |
Vertical Agreements in EU Competition Law
Title | Vertical Agreements in EU Competition Law PDF eBook |
Author | Frank Wijckmans |
Publisher | Oxford University Press, USA |
Pages | 428 |
Release | 2011-11-10 |
Genre | Law |
ISBN | 0199696411 |
Providing a detailed and practical analysis of the entire scope of the law relating to vertical agreements, including the new general block exemption regulations and the Vertical Guidelines, this book is an indispensible tool for all practitioners active in the drafting or reviewing of vertical agreements.