Market Dominance and Antitrust Policy, Second Edition
Show Less

Market Dominance and Antitrust Policy, Second Edition

Michael A. Utton

This new edition addresses the recent fundamental changes in antitrust law, especially in the UK and the EU, and reviews some high profile and controversial cases such as the Boeing–McDonnell Douglas merger and the Microsoft monopoly. The author moves on to deal with several unresolved questions including the conflicts between trade and antitrust policy, the foreign take-over of domestic assets and extra-territorial claims made by certain countries.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 9: Vertical Integration and Vertical Mergers

Michael A. Utton

Extract

Utton2 03 chap 9 4/12/02 16:20 Page 207 9 Vertical integration and vertical mergers I Introduction Our major concern in part II (Chapters 4–8) was the antitrust issues raised by horizontal dominance, whether this came from a single firm or a group of firms acting overtly or covertly together. In this chapter and the next we discuss vertical dominance, that is, the possibility that a firm having market power at one stage of the production process may, by one means or another, increase its market power and hence its profits by operating in other, related production stages. Most finished products in the modern economy go through a number of ‘production’ stages. What starts out as a collection of raw materials may have to go through a whole series of successive refining, manufacturing and distribution stages before it ends up in the retail showroom or store. The number of different stages and the degree to which a product is processed or refined at any one of them will vary from product to product. Some, such as fresh fruit and vegetables, may pass through few vertical stages, although in the case of those flown halfway across the world even this may need to be modified. Others, such as motor cars, drawing on a multiplicity of different materials often manufactured by independent firms, may involve many separate stages. It will help in what follows if we abstract from this real-world complexity and think of a production process having just three vertical...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.