Vertical Integration and International Predation
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.
Fields of Study & Subjects
Economic Policies and Impacts
Publication details
- Journal / source
- World Scientific Studies in International Economics
- Pages
- 23–37
- Publication date
- 25 June 2026
- Language
- EN
- Document type
- Book chapter