Backward partial vertical integration through private placement

Gonçalves, Ricardo

Publication

Backward partial vertical integration through private placement

2015Conference object

dc.contributor.author	Gonçalves, Ricardo
dc.date.accessioned	2016-12-19T17:41:02Z
dc.date.available	2016-12-19T17:41:02Z
dc.date.issued	2015
dc.description.abstract	We analyse the market impact of a partial vertical integration whereby a subset of retail rms acquire, through a private placement operation, a non-controlling stake in the capital of an upstream rm, which supplies an essential input. In addition, we assume that this upstream rm can price discriminate between two groups of retail rms: the retail rms which (now) own a stake in its capital and all of their retail rivals. We nd that price discrimination is optimal and, compared to a vertical separation scenario, there is input foreclosure, a higher retail price and lower social welfare, which suggests that, from a competition policy viewpoint, such partial vertical integrations should be analysed with particular concern. However, conducting a private placement operation of the upstream rm s capital yields gains from trade and we are able to identify the optimal characteristics of such an operation.	pt_PT
dc.description.version	info:eu-repo/semantics/draft	pt_PT
dc.identifier.citation	GONÇALVES, Ricardo - Backward partial vertical integration through private placement. In 8th Annual Meeting of the Portuguese Economic Journal, Minho, Portugal, 4-5 July 2014. - In 8th Annual Meeting of the Portuguese Economic Journal Programme & Abstracts (published online) 25p. Available at: http://www3.eeg.uminho.pt/economia/nipe/PEJ2014/index_ficheiros/Page423.htm	pt_PT
dc.identifier.uri	http://hdl.handle.net/10400.14/21094
dc.language.iso	eng	pt_PT
dc.rights.uri	http://creativecommons.org/licenses/by/4.0/	pt_PT
dc.subject	Private placement	pt_PT
dc.subject	Partial vertical integration	pt_PT
dc.subject	Input foreclosure	pt_PT
dc.subject	Price discrimination	pt_PT
dc.title	Backward partial vertical integration through private placement	pt_PT
dc.type	conference object
dspace.entity.type	Publication
rcaap.rights	openAccess	pt_PT
rcaap.type	conferenceObject	pt_PT