Data and Code for: The Competitive Impact of Vertical Integration by Multiproduct Firms

Principal Investigator(s):  View help for Principal Investigator(s) Fernando Luco, Texas A&M University; Guillermo Marshall, University of British Columbia

Version:  View help for Version V1

Version Title:  View help for Version Title Accepted deposit

Name File Type Size Last Modified
  Replication 02/21/2020 11:44:AM
Readme.pdf application/pdf 157.9 KB 02/18/2020 07:39:PM

Project Citation: 

Luco, Fernando, and Marshall, Guillermo. Data and Code for: The Competitive Impact of Vertical Integration by Multiproduct Firms. Nashville, TN: American Economic Association [publisher], 2020. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-06-26. https://doi.org/10.3886/E117308V1

Project Description

Summary:  View help for Summary We study the impact of vertical integration on pricing incentives in multiproduct industries. To do so, we exploit recent variation in vertical structure in the U.S. carbonated-beverage industry. While the elimination of double marginalization with vertical integration is normally characterized as procompetitive, economic theory predicts that it may cause anticompetitive price increases in multiproduct industries. We indeed find that vertical integration causes price decreases in products with eliminated double margins but price increases in the other products sold by the integrated firm. These results provide new evidence of anticompetitive effects of vertical mergers.

Scope of Project

Subject Terms:  View help for Subject Terms vertical integration; multiproduct firms; carbonated-beverage industry
JEL Classification:  View help for JEL Classification
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms
      L40 Antitrust Issues and Policies: General
      L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 2007 – 2012
Universe:  View help for Universe The prices of carbonated beverages in the United States between the years 2007 and 2012, measured at the product--store--week level.
Data Type(s):  View help for Data Type(s) observational data; program source code

Methodology

Data Source:  View help for Data Source IRI Marketing Data Set, 2007-2012
U.S. Census Bureau American Community Survey, 2007-2012
U.S. Census Bureau County Business Patterns, 2007-2012
NOAA County level weather information, 2007-2012
The Coke and Pepsi System Books (Beverage Digest), 2010
FTC Complaint Docket No. C-4305
FTC Complaint Docket No. C-4301 
Unit(s) of Observation:  View help for Unit(s) of Observation The unit of observation in our estimation sample is a product--store--week combination

Related Publications

Download this project

Published Versions

V1 [2020-06-26]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.