Integration and merger Activity Vertical Integration a Where various stages in the production of a single product are carried out by one firm Horizontal Integration a The merging of the production of similar products into a single firm Conglomerate mergers The integration of different product lines into a single fir Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Integration and Merger Activity • Vertical Integration n Where various stages in the production of a single product are carried out by one firm. • Horizontal Integration n The merging of the production of similar products into a single firm. • Conglomerate Mergers n The integration of different product lines into a single firm