A note on merger in mixed duopoly: Bertrand versus Cournot
AbstractIn this note we analyze the incentives to merge in a mixed duopoly if firms compete in prices or quantities. Our model framework mainly follows Barcena-Ruiz and Garzon (J Econ 80:27–42, 2003 ) who set up the model with quantity competition. We extend their analysis by analyzing the case of competition in prices. Further we compare the incentives to merge with Bertrand and Cournot competition. Comparing quantity with price competition we can show that a merger is more likely with Cournot competition than with Bertrand competition. Copyright Springer-Verlag 2013
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Bibliographic InfoArticle provided by Springer in its journal Journal of Economics.
Volume (Year): 108 (2013)
Issue (Month): 3 (April)
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Web page: http://www.springerlink.com/link.asp?id=108909
Merger; Price competition; Mixed duopoly; L13; L32; L00;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
- L00 - Industrial Organization - - General - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kohei Kamaga & Yasuhiko Nakamura, 2007. "The Core and Productivity-Improving Mergers in Mixed Oligopoly," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 6(3), pages 181-198, December.
- Yasuhiko Nakamura & Tomohiro Inoue, 2007. "Mixed Oligopoly and Productivity-Improving Mergers," Economics Bulletin, AccessEcon, vol. 12(20), pages 1-9.
- Raymond Deneckere & Carl Davidson, 1985. "Incentives to Form Coalitions with Bertrand Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 473-486, Winter.
- Bárcena Ruiz, Juan Carlos & Garzón San Felipe, María Begoña, 2000.
"Mixed Duopoly, Merger and Multiproduct Firms,"
2000-10, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
- Salant, Stephen W & Switzer, Sheldon & Reynolds, Robert J, 1983. "Losses from Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, MIT Press, vol. 98(2), pages 185-99, May.
- Perry, Martin K & Porter, Robert H, 1985. "Oligopoly and the Incentive for Horizontal Merger," American Economic Review, American Economic Association, vol. 75(1), pages 219-27, March.
- repec:ebl:ecbull:v:12:y:2007:i:20:p:1-9 is not listed on IDEAS
- José Méndez-Naya, 2008. "Merger profitability in mixed oligopoly," Journal of Economics, Springer, vol. 94(2), pages 167-176, July.
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