IDEAS home Printed from https://ideas.repec.org/a/aeq/aeqaeq/v59_y2008_is_q5_p27-52.html
   My bibliography  Save this article

Market Integration and the Competitive Effects of Mergers

Author

Listed:
  • Pio Baake
  • Christian Wey

Abstract

This paper examines how the deepening of market integration – a characteristic feature of the so-called globalization – affects the assessment of the competitive effects of (horizontal) mergers. We distinguish between supply-side and demand-side market integration and we argue that the latter type of market integration has been largely neglected in the literature while most of the research focused on the effects of supply-side market integration. Our main concern is that demand-side market integration may give rise to a new anticompetitive effect of mergers which is a result of firms’ incentives to price discriminate between different regions. We also relate our analysis to the proper definition of the relevant geographical market, where we criticize the SSNIP test (or, hypothetical monopolist test) which tends to define markets too narrowly from our perspective.COMMENT: Björn A. Kuchinke

Suggested Citation

  • Pio Baake & Christian Wey, 2008. "Market Integration and the Competitive Effects of Mergers," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(Supplemen), pages 27-52.
    • Handle: RePEc:aeq:aeqaeq:v59_y2008_is_q5_p27-52
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Third Degree Price Discrimination; Buyer Mobility; Mergers;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aeq:aeqaeq:v59_y2008_is_q5_p27-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Deborah Anne Bowen (email available below). General contact details of provider: http://www.duncker-humblot.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.