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Assessing The Anticompetitive Effect Of Mergers For Market Power

Author

Listed:
  • RAMON FAULI-OLLER

    (Department de Fonaments de l'Anàlisi Econòmica, Universitat d'Alacant, Campus de Sant Vicent, 03071 Alacant, Spain)

Abstract

In a symmetric setting with constant marginal costs, the welfare loss from mergers depends on the aggregate response of non-participating firms. This response in turn depends on the degree of concavity of the demand. As the degree of concavity of demand is not observable, we obtain conditions that guarantee that the premerger elasticity of demand can be used for antitrust purposes.

Suggested Citation

  • Ramon Fauli-Oller, 2002. "Assessing The Anticompetitive Effect Of Mergers For Market Power," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 449-458.
    • Handle: RePEc:wsi:igtrxx:v:04:y:2002:i:04:n:s021919890200080x
    DOI: 10.1142/S021919890200080X
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    More about this item

    Keywords

    Antitrust; mergers; welfare; JEL L41;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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