Equilibrium mergers in a composite good industry with efficiencies

Artikel

This paper studies equilibrium merging behavior in composite good industries. Component producers face the option to either merge with a similar component producer (horizontal merger) or a complementary one (vertical merger) of a composite good. Focusing only on strategic reasons, vertical mergers arise at equilibrium only when composite goods are very differentiated or when the number of producers is large while horizontal mergers arise otherwise. When efficiencies are considered, higher marginal cost savings are required for a horizontal merger in a composite industry not to result in a price increase as compared with those required for a regular industry. This finding can be used by antitrust authorities to be more demanding when dealing with horizontal mergers in composite goods industries.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: SERIEs - Journal of the Spanish Economic Association ; ISSN: 1869-4195 ; Volume: 6 ; Year: 2015 ; Issue: 1 ; Pages: 101-127 ; Heidelberg: Springer

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Monopolization; Horizontal Anticompetitive Practices
• Thema: Composite goods ; Substitutes ; Complements ; Horizontal merger ; Vertical merger ; Efficiency effects ; Diversion ratio

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Pardo-Garcia, Cristina ; Sempere-Monerris, Jose J.
• Ereignis: Veröffentlichung
• (wer): Springer
• (wo): Heidelberg
• (wann): 2015

Weitere Informationen

• DOI: doi:10.1007/s13209-014-0121-y
• Handle: http://hdl.handle.net/10419/158536
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ