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Vertical Integration, Tying, and Antitrust Policy
Related Market Conditions and Interindustrial Mergers: Comment
The Rising Incidence of Co-authorship in Economics: Further Evidence
A Note on Bilateral Monopoly and Formula Price Contracts
Vertical integration, tying, and antitrust policy
Formal proof is presented of an earlier article (Northwestern Univ. Law Rev., 55; 62-95 (Apr. 1960)) in which Meyer Burstein argued that the variable-proportions incentive for vertical integration has relevance for antitrust enforcement. Burstein's proposition also argued that there are alternatives to vertical integration by tying nonmonopolized inputs. It also implies that the economic effects of vertical integration and tying are identical, which raises the question of why the two are treated differently by present antitrust laws. Both are found to improve downstream production efficiency, although the new welfare effects are ambiguous. 16 references.