Working Paper
Upward Pricing Pressure of Mergers Weakening Vertical Relationships
Gregor Langus, Vilen Lipatov
CESifo, Munich, 2015
CESifo Working Paper No. 5692
CESifo, Munich, 2015
CESifo Working Paper No. 5692
![](https://cesifo.org/DocImg/cesifo1_wp5692.jpg?c=1689237206)
We modify the UPP test of Farrell and Shapiro (2010) to take into account the possibility that a merger weakens (or eliminates) a vertical supply relationship. After deriving a general effect of the merger, we provide an example of simple estimation strategy when only prices, costs and market shares are available as a snapshot.
CESifo Category
Industrial Organisation
Empirical and Theoretical Methods
Industrial Organisation
Empirical and Theoretical Methods
Keywords: UPP, supply relationship, merger effects
JEL Classification: K210, L490