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| Author: | Greenlee, P. Raskovich, A. |
| Title: | Partial vertical ownership |
| Journal: | European Economic Review
2006 : MAY, VOL. 50:4, p. 1017-1041 |
| Index terms: | microeconomics stock ownership |
| Language: | eng |
| Abstract: | This article analyzes the effects of partial vertical ownership on margins and cost dispersion. According to the authors, a backward ownership interest held by a downstream company yields a partial rebate of the upstream margin. In addition, input demand increases with backward ownership, and the upstream company optimally raises prices as a result. |
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