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Backward Integrated Information Gatekeepers and Independent Divisions in the Product Market
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Jihui Chen
Published/Copyright:
February 22, 2008
This paper examines the welfare effects of vertical integration by an "information gatekeeper" into the product market it serves. Both the integrated gatekeeper and competing firms in the product market earn higher profits, but social welfare declines.
Keywords: information gatekeeper; vertical merger
Published Online: 2008-2-22
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Topics Article
- When Stackelberg and Cournot Equilibria Coincide
- Conflict and Consensus: A Theory of Control in Organisations
- Backward Integrated Information Gatekeepers and Independent Divisions in the Product Market
- Identification of Individual Demands from Market Data under Uncertainty
- On the Role of Uncertainty in the Risk-Incentives Tradeoff
- Time-to-Build and the Inverse U-Shape Investment-Uncertainty Relationship
- Revisiting Independence and Stochastic Dominance for Compound Lotteries
- On Competitive Equilibria with Asymmetric Information
- A Duopoly Location Toolkit: Consumer Densities Which Yield Unique Spatial Duopoly Equilibria
- Purchasing Power Parity with Strategic Markets
- Global vs. Local Information in (Anti-)Coordination Problems with Imitators
- Costly Evidence Production and the Limits of Verifiability
- Research Joint Ventures, Optimal Licensing, and the R&D Subsidy Policy
- Comparative Statics and Welfare in Heterogeneous All-Pay Auctions: Bribes, Caps, and Performance Thresholds
- Ex Post Private Information and Monopolistic Screening
- Passing the Buck in Sequential Negotiation
- Bidding Strategies for Simultaneous Ascending Auctions
- The Dirty Face Problem with Unawareness
- Cost Pass-Through under Delegation
- Contributions Article
- Empirical Implications of Information Structure in Finite Extensive Form Games
- Counter Marginalization of Information Rents: Implementing Negatively Correlated Compensation Schemes for Colluding Parties
- Forgiving-Proof Equilibrium in Infinitely Repeated Games
- A Categorical Model of Cognition and Biased Decision Making
- Mechanism Design with Moderate Evidence Cost
- Connectivity and Allocation Rule in a Directed Network
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- Herd Behavior and Contagion in Financial Markets
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- Advances Article
- The Full Surplus Extraction Theorem with Hidden Actions