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On Welfare Effects Of Horizontal Mergers With Product Differentiation

Author

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  • Escrihuela-Villar, Marc

    (Universitat de les Elles Balears)

Abstract

We use a non-spatial (Chamberlinian) product differentiation model to analyze the welfare effects of horizontal mergers with quantity competition. We argue that(i) mergers can be welfare enhancing if the degree of product differentiation increases after the merger; and,(ii) privately profitable mergers can also increase welfare. Consequently, in this paper we demonstrate that the degree of product differentiation is a crucial factor to assess the welfare effects of a merger.

Suggested Citation

  • Escrihuela-Villar, Marc, 2011. "On Welfare Effects Of Horizontal Mergers With Product Differentiation," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 16(30), pages 7-12.
    • Handle: RePEc:ris:joefas:0026
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    References listed on IDEAS

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    Cited by:

    1. Ana Espínola-Arredondo & Felix Munoz-Garcia & Ae Rin Jung, 2020. "Organic Mergers and Acquisitions," Journal of Industry, Competition and Trade, Springer, vol. 20(1), pages 59-91, March.

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