The Farrell and Shapiro condition revisited
The purpose of this paper is to study the consequences of using the Farrell and Shapiro (1990) sufficient condition for merger approval to sectors in which a downstream horizontal merger may also affect upstream firms. As will be shown below, in some circumstances the sign of the relevant external effect can no longer be established by considering the merger as a sequence of in finitesimal mergers, each corresponding to a marginal change in output.
|Date of creation:||Dec 2007|
|Date of revision:|
|Contact details of provider:|| Phone: 212948503 ext.10401|
Web page: http://iet.fct.unl.pt/Email:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barros, Pedro P. & Cabral, Luis, 1994. "Merger policy in open economies," European Economic Review, Elsevier, vol. 38(5), pages 1041-1055, May.
- Farrell, Joseph & Shapiro, Carl, 1988.
"Horizontal Mergers: An Equilibrium Analysis,"
Department of Economics, Working Paper Series
qt0tp305nx, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Dobson, Paul W & Waterson, Michael, 1997. "Countervailing Power and Consumer Prices," Economic Journal, Royal Economic Society, vol. 107(441), pages 418-30, March.
- al-Nowaihi, A. & Levine, P. L., 1985. "The stability of the cournot oligopoly model: A reassessment," Journal of Economic Theory, Elsevier, vol. 35(2), pages 307-321, August.
- Barros, Pedro Luis Pita, 1997. "Approval Rules for Sequential Horizontal Mergers," CEPR Discussion Papers 1764, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:ieu:wpaper:01. 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: (António Brandão Moniz)
If references are entirely missing, you can add them using this form.