YU Juan, CHEN Shao-gang. Analysis of Intermediate Product Price and Social Welfare in the Vertical Merger of Enterprise[J]. Journal of Electronic Science and Technology, 2004, 2(4): 83-86.
Citation: YU Juan, CHEN Shao-gang. Analysis of Intermediate Product Price and Social Welfare in the Vertical Merger of Enterprise[J]. Journal of Electronic Science and Technology, 2004, 2(4): 83-86.

Analysis of Intermediate Product Price and Social Welfare in the Vertical Merger of Enterprise

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  • Author Bio:

    YU Juan research interest is in the Intermediate Product Price

  • Received Date: 2003-12-14
  • Publish Date: 2004-12-24
  • According to the different products that two upper enterprises produce, this paper analyzes the transfer pricing of intermediate product and the effect of social welfare of vertical merger under imperfect competition market. The conclusions are: the transfer pricing of intermediate product is equal to marginal cost; the perfect outputs that upper enterprises sell to the market before and after the vertical merger of enterprises are the same; the product price in the integrated enterprises may be higher, lower or equal to the price in non-integrated enterprises.
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