Invigorating Vertical Merger Enforcement

34 Pages Posted: 17 Oct 2017 Last revised: 13 Jun 2018

See all articles by Steven C. Salop

Steven C. Salop

Georgetown University Law Center

Date Written: 2018

Abstract

This Feature summarizes why and how vertical merger enforcement should be invigorated. In our modern market system, vigorous vertical merger enforcement is a necessity. Strong enforcement is particularly important in markets where economies of scale and network effects lead to barriers to entry and durable market power. Even when there are parallel vertical mergers, the result may well be an anticompetitive reciprocal dealing, coordinated equilibrium rather than intense competition among efficient integrated firms. Stronger enforcement would involve several steps, including recognition that claims of elimination of double marginalization do not deserve to be silver bullets and that behavioral remedies are generally unable to prevent anticompetitive effects.

Keywords: antitrust, mergers, foreclosure

Suggested Citation

Salop, Steven C., Invigorating Vertical Merger Enforcement (2018). Yale Law Journal, Vol. 127, Pp. 1962-1994. Available at SSRN: https://ssrn.com/abstract=3052332 or http://dx.doi.org/10.2139/ssrn.3052332

Steven C. Salop (Contact Author)

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States
202-662-9095 (Phone)
202-662-9497 (Fax)

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