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Mergers under endogenous minimum quality standard: a note

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  • Berardino Cesi

    (University of Bristol)

Abstract

We introduce merging strategies and endogenous MQS, borrowed from Ecchia and Lambertini (1997), in Scarpa (1998). MQS induces the low-quality firm to exit the market and leads to a monopoly arising from the bilateral merger of the high-quality firms

Suggested Citation

  • Berardino Cesi, 2010. "Mergers under endogenous minimum quality standard: a note," Economics Bulletin, AccessEcon, vol. 30(4), pages 3260-3266.
    • Handle: RePEc:ebl:ecbull:eb-10-00589
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    Cited by:

    1. Marco A. Marini, 2018. "Collusive agreements in vertically differentiated markets," Chapters, in: Luis C. Corchón & Marco A. Marini (ed.), Handbook of Game Theory and Industrial Organization, Volume II, chapter 3, pages 34-56, Edward Elgar Publishing.

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    JEL classification:

    • L0 - Industrial Organization - - General
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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