We examine takeover strategies for a multiproduct firm operating in a horizontally differentiated market. We show why a strategic scheme for taking over competitors should obey a maximal market share connection principle. When trying to reinforce its market power, a multiproduct firm should try and connect its product lines because this renders its pricing policy more efficient.
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Paper provided by Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor. in its series Papers with number
99-34.
Length: 26 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:pnegmi:99-34
Contact details of provider: Postal: THEMA, Universite de Paris X-Nanterre, U.F.R. de science economiques, gestion, mathematiques et informatique, 200, avenue de la Republique 92001 Nanterre CEDEX.
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