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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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    References listed on IDEAS

    as
    1. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-131, June.
    2. Mario Pezzino, 2010. "Minimum Quality Standards with More Than Two Firms Under Cournot Competition," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(3), pages 26-45, August.
    3. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521816632, September.
    4. Valletti, Tommaso M, 2000. "Minimum Quality Standards under Cournot Competition," Journal of Regulatory Economics, Springer, vol. 18(3), pages 235-245, November.
    5. Naoto Jinji & Tsuyoshi Toshimitsu, 2004. "Minimum Quality Standards under Asymmetric Duopoly with Endogenous Quality Ordering: A Note," Journal of Regulatory Economics, Springer, vol. 26(2), pages 189-199, September.
    6. Simon Pilsbury & Andrew Meaney, 2009. "Are Horizontal Mergers and Vertical Integration a Problem?," OECD/ITF Joint Transport Research Centre Discussion Papers 2009/4, OECD Publishing.
    7. Giulio Ecchia & Luca Lambertini, 1997. "Minimum Quality Standards and Collusion," Journal of Industrial Economics, Wiley Blackwell, vol. 45(1), pages 101-113, March.
    8. Scarpa, Carlo, 1998. "Minimum quality standards with more than two firms1," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 665-676, September.
    9. repec:bla:jindec:v:45:y:1997:i:1:p:101-13 is not listed on IDEAS
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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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    More about this item

    Keywords

    Mergers; Minimum quality standard; Quality differentiation.;
    All these keywords.

    JEL classification:

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

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