Concentration horizontale et relations verticales

This paper studies horizontal mergers in vertically related markets. In atwo-level Cournot model, with an intermediate and a final market, we show thatdownstream mergers inducing size effects are, ceteris paribus, more profitablethan upstream ones. Moreover, a merger at one level reduces the incentivesto merge at the other level. Endogenizing the firms’ decisions to merge byconsidering a merger game supports the previous results.