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Unilateral effects of mergers with general linear demand

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Author Info

  • Hausman, Jerry
  • Moresi, Serge
  • Rainey, Mark

Abstract

We derive the formula for the unilateral price effects of mergers of two products with linear demand in the general asymmetric situation. The formula uses the same information required to calculate upward pricing pressure in the 2010 Horizontal Merger Guidelines.

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File URL: http://www.sciencedirect.com/science/article/B6V84-51C9JYF-3/2/d5675cde09e533b722c492b158f1632c
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 111 (2011)
Issue (Month): 2 (May)
Pages: 119-121

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Handle: RePEc:eee:ecolet:v:111:y:2011:i:2:p:119-121

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Horizontal mergers Unilateral effects;

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Cited by:
  1. Robert Willig, 2011. "Unilateral Competitive Effects of Mergers: Upward Pricing Pressure, Product Quality, and Other Extensions," Review of Industrial Organization, Springer, vol. 39(1), pages 19-38, August.

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