Introduction to Chapters VII and IX of Augustin Cournot, Researches into the Mathematical Principles of the Theory of Wealth
In November 2007, the European Commission accepted a set of guidelines concerning its review of non-horizontal mergers. The section on conglomerate mergers contains a discussion of the possibility that merging firms will bundle their products together. It reads, in part: "[W]hen producers of complementary goods are pricing independently, they will not take into account the positive effect of a drop in the price of their product on the sales of the other product. Depending on the market conditions, a merged firm may internalise this effect and may have a certain incentive to lower margins if this leads to higher overall profits (this incentive is often referred to as the Ã¢â‚¬Å“Cournot effectÃ¢â‚¬Â)."
When requesting a correction, please mention this item's handle: RePEc:cpi:cpijrn:4.1.2008:i=5064. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lindsay McSweeney)
If references are entirely missing, you can add them using this form.