Steven Salop and Daniel P. Culley provide a modern analytical framework for the assessment of vertical mergers and illustrative examples of recent antitrust agency enforcement actions upon which practitioners and agency staff alike may rely. The article also identifies a number of legal and policy issues which would need to be considered were the Vertical Merger Guidelines to be revised. To read the article, click here. For a listing for vertical merger enforcement actions by the FTC and DOJ since 1994, click here.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...