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Article
Vertical Integration and Competition Between Networks
Review of Network Economics (2005)
  • Catherine C. De Fontenay, University of Melbourne
  • Joshua S. Gans, University of Melbourne
Abstract

This paper provides a simple model of bargaining and integration within a network and considers how intra-network structure is impacted on by competition between networks. Apart from its analytical tractability, our model demonstrates how integration can be used strategically to redistribute network profits from downstream firms to upstream providers of network services. It also demonstrates that increased inter-network competition can mitigate incentives for inefficient integration.

Publication Date
March 1, 2005
Citation Information
Catherine C. De Fontenay and Joshua S. Gans. "Vertical Integration and Competition Between Networks" Review of Network Economics Vol. 4 Iss. 1 (2005)
Available at: http://works.bepress.com/joshuagans/35/