Pivotal Buyers and Bargaining PowerEconomic Analysis Group, Antitrust Division, U.S. Department of Justice, 2000 - Cable television - 25 pages |
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advertising revenues aggregate payments assumption becoming pivotal buyer merger cable MSO cable network cash cable systems cable television industry cash flow margin Chipty and Snyder CNBC Comedy Central comparative statics consistent candidate equilibrium Court TV direct broadcast satellite Economic Analysis Group FCC's horizontal ownership Ficco Food Network given buyer horizontal ownership limits i's payment joint surplus Kagan Learning Channel Lemma limits on cable mature cable networks merging buyers million Nash bargaining outcome Nash bargaining solution negative cash flows negotiations network cash flow nonnegative number of subscribers pivotal buyer post-merger equilibrium production is efficient reaching a deal relative size effect right-hand side satisfies condition 3.1 satisfies the supplier's SCI FI Channel start-up cable networks start-up networks subscriber base supplier and buyer supplier's disagreement outcome supplier's gross surplus supplier's participation constraint supplier's production decision tends to worsen threat point V₁ vertically integrated worsen the merging