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( Kuang Cheng Wang ),( Hui Wen Koo ),( Tain Jy Chen ) 세종대학교 경제통합연구소 (구 세종대학교 국제경제연구소) 2005 Journal of Economic Integration Vol.20 No.2
This paper considers a successive oligopoly model in which a vertically-intergrated firm(VI firm) can buy or sell intermediate goods. We find that when there are only a small number of VI firms in the market, they tend to buyor even to store up intermediate goods. In our setting, a vertical merger wil l not result in market foreclosure and it always in creases social welfare.