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The law and economics approach to competition policy uses the tools of economics to showhow the interactions between firms may result in outcomes that are harmful to society, and howcompetition (antitrust) law can prevent such outcomes.
On working with three cases of no vertical merger, single chain vertical merger and double chain vertical merger we find that joint profits of upstream and downstream firms are lowest when both channels choose vertical integration as compared to Nash Bargaining regime. We also find that Vertical integration is welfare enhancing because retail price will be minimum as upstream and downstream firms behave as a single entity. Hence for both single and double chain mergers, elimination of double marginalization is procompetitive. These results have implications for the enforcement of competition (antitrust) law.
Srishti Gupta (2025) "Buyer Power, Exclusive Contracts, and Vertical Mergers in Competing Supply Chains: Implications for Competition Law and Policy ", GNLU Journal of Law And Economics : Volume V 2022, Issue I
Available at:
https://gnlu.ac.in/GJLE/Publications/Buyer Power, Exclusive Contracts, and Vertical Mergers in Competing Supply Chains: Implications for Competition Law and Policy
In 2023, the Delhi High Court disposed of more than 87,000 cases, a recordbreaking figure. Yet its backlog grew. Across India, governments have doubled judicial strength in some states, built stateoftheart ecourts, and implemented case management software. Still, over 5.1 crore cases remain pending. The standard explanation treats this as a resource problem: too few judges chasing too many litigants. But what if the real answer is more uncomfortable What if delay is not a bug in the system, but a feature, a currency that judges spend, save, and strategically deploy This paper advances a heretical proposition: that for the Indian High Court judge, disposing of cases is not always the rational choice. In a system where the government is simultaneously the largest litigant and the arbiter of judicial careers, where a controversial judgment can trigger a punitive transfer while a safe adjournment goes unnoticed, and where forty dismissals at the admission stage count the same as one laboriously reasoned final verdict, delay emerges as the equilibrium strategy. The crisis of pending cases is not an accident of overload; it is the predictable outcome of incentives working exactly as designed. Employing a political economy framework, we model the High Court judge as a strategic actor maximizing a utility function comprised of reputation (professional prestige), leisure (workload aversion), promotion prospects (chances of elevation or postretirement appointment), and the cost of dissent (risk of punitive transfer or career backlash). The paper proposes an empirical model to test whether judicial delays correlate with political cycles and the identity of the litigant (State vs. Citizen), suggesting that strategic delay is a rational response to the institutional constraints of the Indian judiciary.