Welfare Enhancing Mergers Under Product Differentiation
AbstractThis paper considers a model of duopoly with differentiated products to examine the welfare effects of a merger between two asymmetric firms. We find that for quantity competition, the parameter range for welfare enhancing merger widens if the products are closer substitutes. On the other hand, mergers are never welfare enhancing in this setting when firms compete in prices.
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Bibliographic InfoPaper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2009-508.
Length: 14 Pages
Date of creation: Oct 2009
Date of revision:
Other versions of this item:
- Tina Kao & Flavio Menezes, 2010. "Welfare-Enhancing Mergers Under Product Differentiation," Manchester School, University of Manchester, vol. 78(4), pages 290-301, 07.
- Flavio Menezes & Tina Kao, 2007. "Welfare Enhancing Mergers under Product Differentiation," Discussion Papers Series 350, School of Economics, University of Queensland, Australia.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-24 (All new papers)
- NEP-COM-2009-10-24 (Industrial Competition)
- NEP-IND-2009-10-24 (Industrial Organization)
- NEP-MIC-2009-10-24 (Microeconomics)
- NEP-REG-2009-10-24 (Regulation)
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.:
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Review of Industrial Organization,
Springer, vol. 17(3), pages 277-284, November.
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