Does Vertical Integration Effect Market Power? Evidence from U.S. Food Manufacturing Industries

The issue of whether vertical integration can raise market power is hotly debated because firms have a market power-related incentive to integrate vertically. Using a sample of U.S. food manufacturing industries, this “market power” motive is empirically tested in this study. Empirical analysis shows that forward vertical ownership integration (or vertical mergers) did not increase food manufacturers’ market power in the final product market. The study, however, shows that both market structure and conduct significantly influenced market power in the food industries.


Issue Date:
2005-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/43737
Published in:
Journal of Agricultural and Applied Economics, Volume 37, Number 1
Page range:
263-276
Total Pages:
14
JEL Codes:
L13; L22; Q13
Note:
Vertical Integration




 Record created 2017-04-01, last modified 2017-08-25

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