Essays in Industrial Organization

This dissertation consists of four chapters. Using data on firms in Switzerland, the first chapter shows that a reduction in trade barriers between Switzerland and the European Union results in firms which are on average less vertically integrated. This finding confirms recent work in international trade theory, predicting that a reduction in trade barriers makes vertical integration less attractive by thickening the market for intermediate input goods. The second chapter shows that a reduction in trade barriers increases concentration in certain industries. This finding supports the notion that fewer firms are able to survive as the toughness of price competition increases. The third chapter takes a closer look at mergers and acquisitions, which are an important vehicle for such changes in vertical or horizontal market structure. In the fourth chapter, recent developments in the market for Internet connectivity are analyzed.