Work

Vertical Integration and International Predation

Year: 2026

Type: book-chapter

Abstract: This paper investigates the interrelationship between a firm's incentive to engage in international predatory pricing and its domestic vertical industry ties in the context of the deep-pocket theory of predation. The deep pocket stems from a vertically integrated firm's ability to shift funds between its upstream and downstream divisions, enabling it to prey on vertically unintegrated upstream competitors. Vertical integration is shown to function as a cause of and a deterrent to foreign predatory behavior.

Source: World Scientific Studies in International Economics

DOI: 10.1142/9789819829125_0002

Author: Daniel M. Bernhofen

Institution: Clark University

Language: English

Topic: Merger and Competition Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W3122245135

FWCI:

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Related to: 20