This paper shows that vertical foreclosure can have a dynamic rationale. By refusing to supply an efficient downstream rival, a vertically integrated incumbent sacrifices current profits but can exclude the rival by depriving it of the critical profits it needs to be successful. In turn, monopolizing the downstream market may prevent the incumbent from losing most of its future profits because it allows the incumbent to extract more rents from an efficient upstream rival if future upstream entry cannot be discouraged, and it also deters future upstream entry by weakening competition for the input and reducing the postentry profits of the prospective upstream competitor.

Foreclosure

Economic rent

Vertical Integration

10.1086/709584

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Citations (23)

Textbook outcome in urgent early cholecystectomy for acute calculous cholecystitis: results post hoc of the S.P.Ri.M.A.C.C study

World Journal of Emergency Surgery (2024)

Paola Fugazzola Silvia Carbonell Morote Lorenzo Cobianchi Federico Coccolini Juan Jesus Rubio‐García

Abstract Introduction A textbook outcome patient is one in which the operative course passes uneventful, without complications, readmission or mortality. There is a lack of publications in terms of TO on acute cholecystitis. Objetive The objective of this study is to analyze the achievement of TO in patients with urgent early cholecystectomy (UEC) for Acute Cholecystitis. and to identify which factors are related to achieving TO. Materials and methods This is a post hoc study of the SPRiMACC study. It´s a prospective multicenter observational study run by WSES. The criteria to define TO in urgent early cholecystectomy (TOUEC) were no 30-day mortality, no 30-day postoperative complications, no readmission within 30 days, and hospital stay ≤ 7 days (75th percentile), and full laparoscopic surgery. Patients who met all these conditions were taken as presenting a TOUEC. Outcomes 1246 urgent early cholecystectomies for ACC were included. In all, 789 patients (63.3%) achieved all TOUEC parameters, while 457 (36.6%) failed to achieve one or more parameters and were considered non-TOUEC. The patients who achieved TOUEC were younger had significantly lower scores on all the risk scales analyzed. In the serological tests, TOUEC patients had lower values for in a lot of variables than non-TOUEC patients. The TOUEC group had lower rates of complicated cholecystitis. Considering operative time, a shorter duration was also associated with a higher probability of reaching TOUEC. Conclusion Knowledge of the factors that influence the TOUEC can allow us to improve our results in terms of textbook outcome.

Post-hoc analysis

10.1186/s13017-024-00539-6

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Exclusionary Practices: The Economics of Monopolisation and Abuse of Dominance

Chiara Fumagalli Massimo Motta Claudio Calcagno

The most controversial area in competition policy is that of exclusionary practices, where actions are taken by dominant firms to deter competitors from challenging their market positions. Economists have been struggling to explain such conduct and to guide policy-makers in designing sensible enforcement rules. In this book, authors Chiara Fumagalli, Massimo Motta, and Claudio Calcagno explore predatory pricing, rebates, exclusive dealing, tying, and vertical foreclosure, through a blend of theory and practice. They develop a general framework which builds on and extends existing economic theories, drawing upon case law, discussions of cases and other practical considerations to identify workable criteria that can guide competition authorities to assess exclusionary practices. Along with analyses of policy implications and insights applied to case studies, the book provides practitioners with non-technical discussions of the issues at hand, while guiding economics students with dedicated technical sections with rigorous formal models.

Tying

Dominance (genetics)

Predatory pricing

Competitor analysis

Competition policy

Foreclosure

Competition Law

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Citations (30)

Internal Capital Markets, Cross-Subsidization and Product Market Competition

RePEc: Research Papers in Economics (2001)

Giacinta Cestone Chiara Fumagalli

This Paper analyses the interaction between internal capital market allocations and product market competition. It is argued that diversification and divestiture are both rational responses to anticipated changes in the competitive environment. Diversification is the optimal response to an anticipated toughening of competition, whereas divestiture may encourage competitors to adopt collusive pre-commitments. Moreover, thanks to the ability to shift resources across units, a diversified business group can consolidate its market power across industries. Our results yield empirically testable predictions relating the stock-market reaction to diversification announcements and the diversification premium to product market factors.

Divestment

Competitor analysis

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Oncology is changing: the challenge of effectively assessing response within clinical trials in low-grade gliomas

Oncology Reviews (2011)

Ilaria Imarisio Chiara Fumagalli

The current WHO classification of primary central nervous system (CNS) tumors recognizes four separate tumor grades (I–IV), which can be grouped into low-grade (I and II) or high-grade (III and IV), depending on the absence or presence of high-grade histopathological features, such as microvascular proliferation and necrosis...

10.4081/oncol.2011.19

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Buyer power and quality improvements

Research in Economics (2007)

Pierpaolo Battigalli Chiara Fumagalli Michele Polo

Rivalry

Economic surplus

Investment

Bargaining Power

10.1016/j.rie.2007.02.002

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Citations (58)

ECONOMIC PRINCIPLES FOR THE ENFORCEMENT OF ABUSE OF DOMINANCE PROVISIONS

Journal of Competition Law & Economics (2024)

Chiara Fumagalli Massimo Motta

Abstract The European Commission (EC) has recently announced its intention to issue Guidelines on exclusionary abuses. In this paper, we explain how economics can and should be used to inform a sound and effects-based approach in the enforcement of Article 102 TFEU. In particular, the EC should be guided only by a consumer welfare standard; exclusive dealing and exclusivity rebates should be subject to a (rebuttable) presumption of harm; price–cost tests are meaningful only for predation and other practices that do not reference rivals; essentiality of the input should not be a requirement for vertical foreclosure cases of any type, but such cases should be limited only to dominant firms that satisfy certain criteria.

Dominance (genetics)

10.1093/joclec/nhae003

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