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Mergers under endogenous minimum quality standard: a note

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  • Berardino Cesi

    (University of Bristol)

Abstract

We introduce merging strategies and endogenous MQS, borrowed from Ecchia and Lambertini (1997), in Scarpa (1998). MQS induces the low-quality firm to exit the market and leads to a monopoly arising from the bilateral merger of the high-quality firms

Suggested Citation

  • Berardino Cesi, 2010. "Mergers under endogenous minimum quality standard: a note," Economics Bulletin, AccessEcon, vol. 30(4), pages 3260-3266.
    • Handle: RePEc:ebl:ecbull:eb-10-00589
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    References listed on IDEAS

    as
    1. Giulio Ecchia & Luca Lambertini, 1997. "Minimum Quality Standards and Collusion," Journal of Industrial Economics, Wiley Blackwell, vol. 45(1), pages 101-113, March.
    2. Scarpa, Carlo, 1998. "Minimum quality standards with more than two firms1," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 665-676, September.
    3. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919.
    4. Mario Pezzino, 2010. "Minimum Quality Standards with More Than Two Firms Under Cournot Competition," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(3), pages 26-45, August.
    5. Simon Pilsbury & Andrew Meaney, 2009. "Are Horizontal Mergers and Vertical Integration a Problem?," OECD/ITF Joint Transport Research Centre Discussion Papers 2009/4, OECD Publishing.
    6. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-131, June.
    7. Valletti, Tommaso M, 2000. "Minimum Quality Standards under Cournot Competition," Journal of Regulatory Economics, Springer, vol. 18(3), pages 235-245, November.
    8. Naoto Jinji & Tsuyoshi Toshimitsu, 2004. "Minimum Quality Standards under Asymmetric Duopoly with Endogenous Quality Ordering: A Note," Journal of Regulatory Economics, Springer, vol. 26(2), pages 189-199, September.
    9. Ecchia, Giulio & Lambertini, Luca, 1997. "Minimum Quality Standards and Collusion," Journal of Industrial Economics, Wiley Blackwell, vol. 45(1), pages 101-113, March.
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    Cited by:

    1. Marco A. Marini, 2018. "Collusive agreements in vertically differentiated markets," Chapters, in: Luis C. Corchón & Marco A. Marini (ed.), Handbook of Game Theory and Industrial Organization, Volume II, chapter 3, pages 34-56, Edward Elgar Publishing.

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    More about this item

    Keywords

    Mergers; Minimum quality standard; Quality differentiation.;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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