TITLE:
Vertical Mergers, Raising Rivals’ Costs and Foreclosure in a Network Industry
AUTHORS:
Adekola Oyenuga
KEYWORDS:
Vertical Structure, Oligopoly, Antitrust Policy, Congestion Externalities, Network Effects
JOURNAL NAME:
Modern Economy,
Vol.5 No.4,
April
22,
2014
ABSTRACT: Foreclosure
through raising a network rival’s costs may not be detrimental in the
short-term, but in the longer-term it may allow a predator to expand its market
share. The focus of antitrust opinion in assessing potential vertical mergers
should therefore be on the longer-term effects of such mergers.