Partial Vertical Integration, Ownership Structure and Foreclosure
We study the incentive to acquire a partial stake in a vertically related fi
rm and then foreclose
rivals. We show that whether such partial acquisitions are pro
table depends crucially on the
initial ownership structure of the target
rm and on corporate governance.
*Coauthored by Nadav Levy (IDC Herzlya) and David Gilo (Tel Aviv University)