Horizontal Mergers in Spatially Differentiated Noncooperative Markets
AbstractThe authors present a Cournot-Nash model of horizontal mergers between firms that engage in spatial price discrimination. The model extends the analysis of such mergers as presented in the U.S. Department of Justice's Merger Guidelines. Rather than conclude the evaluation of such a merger with an estimate of the postmerger Hirschman-Herfindahl Index, as is done in the Merger Guidelines, the authors' model yields an estimate of the increases in the equilibrium, postmerger delivered.prices caused by the merger. Copyright 1992 by Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Industrial Economics.
Volume (Year): 40 (1992)
Issue (Month): 4 (December)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
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- Calem, Paul S. & Dor, Avi & Rizzo, John A., 1999. "The welfare effects of mergers in the hospital industry," Journal of Economics and Business, Elsevier, vol. 51(3), pages 197-213, May.
- Philippe Cyrenne, 1999. "On Antitrust Enforcement and the Deterrence of Collusive Behaviour," Review of Industrial Organization, Springer, vol. 14(3), pages 257-272, May.
- George Norman & Lynne Pepall, 1998. "Horizontal Mergers in Spatially Differentiated NonCooperative Markets: a Comment," Discussion Papers Series, Department of Economics, Tufts University 9804, Department of Economics, Tufts University.
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