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A note on merger in mixed duopoly: Bertrand versus Cournot


  • Kai Andree



In this note we analyze the incentives to merge in a mixed duopoly if firms compete in prices or quantities. Our model framework mainly follows Barcena-Ruiz and Garzon (J Econ 80:27–42, 2003 ) who set up the model with quantity competition. We extend their analysis by analyzing the case of competition in prices. Further we compare the incentives to merge with Bertrand and Cournot competition. Comparing quantity with price competition we can show that a merger is more likely with Cournot competition than with Bertrand competition. Copyright Springer-Verlag 2013

Suggested Citation

  • Kai Andree, 2013. "A note on merger in mixed duopoly: Bertrand versus Cournot," Journal of Economics, Springer, vol. 108(3), pages 291-298, April.
  • Handle: RePEc:kap:jeczfn:v:108:y:2013:i:3:p:291-298
    DOI: 10.1007/s00712-012-0280-x

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    References listed on IDEAS

    1. Yasuhiko Nakamura & Tomohiro Inoue, 2007. "Mixed Oligopoly and Productivity-Improving Mergers," Economics Bulletin, AccessEcon, vol. 12(20), pages 1-9.
    2. Kohei Kamaga & Yasuhiko Nakamura, 2007. "The Core and Productivity-Improving Mergers in Mixed Oligopoly," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 6(3), pages 181-198, December.
    3. Juan Carlos Bárcena-Ruiz & María Begoña Garzón, 2003. "Mixed Duopoly, Merger and Multiproduct Firms," Journal of Economics, Springer, vol. 80(1), pages 27-42, August.
    4. Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 185-199.
    5. repec:ebl:ecbull:v:12:y:2007:i:20:p:1-9 is not listed on IDEAS
    6. José Méndez-Naya, 2008. "Merger profitability in mixed oligopoly," Journal of Economics, Springer, vol. 94(2), pages 167-176, July.
    7. Perry, Martin K & Porter, Robert H, 1985. "Oligopoly and the Incentive for Horizontal Merger," American Economic Review, American Economic Association, vol. 75(1), pages 219-227, March.
    8. Raymond Deneckere & Carl Davidson, 1985. "Incentives to Form Coalitions with Bertrand Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 473-486, Winter.
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    More about this item


    Merger; Price competition; Mixed duopoly; L13; L32; L00;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L00 - Industrial Organization - - General - - - General


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