The church report's analysis of vertical and conglomerate mergers: A reply to Cooper, Froeb, O'Brien, and Vita

Journal of Competition Law and Economics

Volumn 1, Issue 4, 2005, Pages 797-802

  Church, Jeffrey ^a  

^a UNIVERSITY OF CALGARY   (Canada)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 31844443590     PISSN: 17446414     EISSN: None     Source Type: Journal    
DOI: 10.1093/joclec/nhi026     Document Type: Article

References (15)

1. Jeffrey Church, Impact of Vertical and Conglomerate Mergers (2004), http://europa.eu.int/comm/competition/mergers/others/merger_impact.pdf.
2. A companion piece sponsored by DG Enterprise and Industry considers efficiency benefits associated with non-horizontal mergers in detail. See Simon Bishop et al., The Efficiency-Enhancing Effects of Non-Horizontal Mergers (2005), http://europa.eu.int/comm/enterprise/ library/lib-competition/doc/non_horizontal_mergers.pdf.
3. James Cooper, Luke Froeb, Dan O'Brien & Michael Vita, A Critique of Professor Church's Report on the Impact of Vertical and Conglomerate Mergers on Competition 4, 1 J. Competition L. & Econ. 785 (2005).
4. Id. at 790.
5. Eric Avenel & Corinne Barlet, Vertical Foreclosure, Technological Choice, and Entry on the Intermediate Market, 9 J. Econ. & Mgmt. Strategy 211 (2000).
6. Cooper, Froeb, O'Brien & Vita, supra note 3, at 790.
7. Church, supra note 1, at iv.
8. Id. at 10.
9. Cooper, Froeb, O'Brien & Vita, supra note 3, at 790.
10. Douglas Bernheim & Michael Whinston, Exclusive Dealing, 106 J. POL. ECON. 64 (1998), show that the introduction of non-coincident market effects can result in an incentive for foreclosure that is profitable and harms consumers. A non-coincident market means that the market power created upstream is exercised in a different downstream market than the one in which the vertically integrated firm participates. For the complete list of factual circumstances that must be present for the Bernheim-Whinston model to indicate anticompetitive harm from, and incentive to, vertically merge and foreclose,
11. see Church, supra note 1, at 114-15.
12. Cooper, Froeb, O'Brien & Vita, supra note 3, at 791.
13. Id. at 792.
14. See Church, supra note 1, at iii, iv, 9.
15. Id. at 10.