Endogenous Merger Waves in Vertically Related Industries
AbstractWe study merger waves in vertically related industries where firms can engage in both vertical and horizontal mergers. Even though any individual merger would have been profitable, firms may refrain from merging for fear of negative impacts from other mergers. When they do merge, however, they always merge in waves, which is either vertical or horizontal depending on the relative intensity of double markup and horizontal competitions in the two industries. Finally, merger waves may happen with or without any fundamental change in the underlying economic conditions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 11-34.
Length: 24 pages
Date of creation: Oct 2011
Date of revision:
Contact details of provider:
Web page: http://www.NETinst.org/
merger wave; horizontal mergers; vertical mergers; stable market structure;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-07 (All new papers)
- NEP-BEC-2011-11-07 (Business Economics)
- NEP-COM-2011-11-07 (Industrial Competition)
- NEP-HME-2011-11-07 (Heterodox Microeconomics)
- NEP-IND-2011-11-07 (Industrial Organization)
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.:
- Masahiro Abiru & Babu Nahata & Subhashis Raychaudhuri & Michael Waterson, 2003.
"Equilibrium structures in vertical oligopoly,"
General Economics and Teaching
- Salinger, Michael A, 1988. "Vertical Mergers and Market Foreclosure," The Quarterly Journal of Economics, MIT Press, vol. 103(2), pages 345-56, May.
- Ali Hortacsu & Chad Syverson, 2006.
"Cementing Relationships: Vertical Integration, Foreclosure, Productivity, and Prices,"
06-21, Center for Economic Studies, U.S. Census Bureau.
- Ali HortaÃ§su & Chad Syverson, 2007. "Cementing Relationships: Vertical Integration, Foreclosure, Productivity, and Prices," Journal of Political Economy, University of Chicago Press, vol. 115, pages 250-301.
- Ali Hortacsu & Chad Syverson, 2007. "Cementing Relationships: Vertical Integration, Foreclosure, Productivity, and Prices," NBER Working Papers 12894, National Bureau of Economic Research, Inc.
- Ali Hortacsu & Chad Syverson, 2008. "Cementing Relationships: Vertical Integration, Foreclosure, Productivity, and Prices," Working Papers 08-41, Center for Economic Studies, U.S. Census Bureau.
- Flavio Toxvaerd, 2004.
"Strategic Merger Waves: A Theory of Musical Chairs,"
Discussion Paper Series
dp359, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- Toxvaerd, Flavio, 2008. "Strategic merger waves: A theory of musical chairs," Journal of Economic Theory, Elsevier, vol. 140(1), pages 1-26, May.
- Toxvaerd, Flavio, 2007. "Strategic Merger Waves: A Theory of Musical Chairs," CEPR Discussion Papers 6159, C.E.P.R. Discussion Papers.
- Steffen Ziss, 2005. "Horizontal mergers and successive oligopoly," Working Papers eg0041, Wilfrid Laurier University, Department of Economics, revised 2005.
- Martynova, Marina & Renneboog, Luc, 2008. "A century of corporate takeovers: What have we learned and where do we stand?," Journal of Banking & Finance, Elsevier, vol. 32(10), pages 2148-2177, October.
- Bonanno, Giacomo & Vickers, John, 1988. "Vertical Separation," Journal of Industrial Economics, Wiley Blackwell, vol. 36(3), pages 257-65, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicholas Economides).
If references are entirely missing, you can add them using this form.