Profitable horizontal mergers: A market structure-oriented view
AbstractWe propose a model in which mergers exert a more pronounced effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal mergers profitable and welfare-improving even if costs are linear. The results help to reconcile theory with various empirical findings on mergers. --
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Bibliographic InfoPaper provided by Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes in its series SFB 373 Discussion Papers with number 2000,27.
Date of creation: 2000
Date of revision:
efficient hedging; quantile hedging; jump-diffusion; martingale measure.;
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