VERTICAL MERGERS AND PRODUCT DIFFERENTIATION*
在Hotelling选址模型中研究纵向合并的均衡理论，发现纵向整合会增强整合企业的产品差异化程度，且部分整合可能提高非整合下游企业的利润，并讨论了福利含义。
This paper presents an equilibrium theory of vertical mergers that incorporates strategic behaviors in the Hotelling‐type location model. This enables one to consider the relationship between downstream firms' strategies for product differentiation and vertical integration. I show that vertical integration enhances the degree of product differentiation of the integrated firm. Under some conditions, partial integration arises in equilibrium, which may increase the profit of the nonintegrated downstream firm. The paper also discusses the welfare implications of vertical integration.