Vertical Mergers Boost Product Differentiation, Benefit Non-Integrated Firms
This article explores how businesses merging in a vertical way can affect the types of products they offer. The researchers studied how two companies working together can make their products stand out more from each other. They found that when companies team up vertically, their products become more different from each other. Sometimes, it's profitable for a company not joining the merger to still make money. So, overall, joining forces can make products unique and increase overall profits.