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On merger profitability in a cournot setting

Author

Listed:
  • Ramón Faulí-Oller

    (Universidad de Alicante)

Abstract

In a setting where symmetric firms compete a la Cournot and costs are linear, the degree of concavity is identified as the main determinant of merger profitability. This allows to generalize the results in Salant et al (1983) and Cheung (1992).

Suggested Citation

  • Ramón Faulí-Oller, 1997. "On merger profitability in a cournot setting," Working Papers. Serie AD 1997-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1997-03
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1997-03.pdf
    File Function: Fisrt version / Primera version, 1997
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    Citations

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    Cited by:

    1. Weigt, H. & Willems, Bert, 2011. "The Effect of Divestitures in the German Electricity Market," Other publications TiSEM 7bbea5b0-7489-416f-8767-d, Tilburg University, School of Economics and Management.
    2. Tomaso Duso & Lars-Hendrik Röller & Jo Seldeslachts, 2014. "Collusion Through Joint R&D: An Empirical Assessment," The Review of Economics and Statistics, MIT Press, vol. 96(2), pages 349-370, May.
    3. Rabah Amir, "undated". "Market Structure, Scale Economies and Industry Performance," CIE Discussion Papers 2000-03, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    4. Marie-Laure Allain & Saïd Souam, 2011. "A note on horizontal mergers in vertically related industries," Economics Bulletin, AccessEcon, vol. 31(1), pages 156-166.
    5. Canton, Joan & David, Maia & Sinclair-Desgagné, Bernard, 2012. "Environmental Regulation and Horizontal Mergers in the Eco-industry," Strategic Behavior and the Environment, now publishers, vol. 2(2), pages 107-132, July.
    6. J. Peter Neary, 2002. "Globalisation and market structure," Working Papers 200220, School of Economics, University College Dublin.
    7. Kao, Tina & Menezes, Flavio, 2009. "Endogenous mergers under multi-market competition," Journal of Mathematical Economics, Elsevier, vol. 45(12), pages 817-829, December.
    8. Ramon Fauli-Oller & Lluis Bru, 2008. "Horizontal mergers for buyer power," Economics Bulletin, AccessEcon, vol. 12(3), pages 1-7.
    9. Tsygankova, Marina, 2010. "When is a break-up of Gazprom good for Russia?," Energy Economics, Elsevier, vol. 32(4), pages 908-917, July.
    10. Marie-Laure Allain & Saïd Souam, 2004. "Concentration horizontale et relations verticales," Working Papers hal-00242914, HAL.
    11. Berardino Cesi, 2010. "Horizontal Mergers: A Solution Of The Insiders' Dilemma," Bulletin of Economic Research, Wiley Blackwell, vol. 62(2), pages 171-180, April.
    12. Tarun Kabiraj & Arijit Mukherjee, 2000. "Cooperation in R&D and production: a three-firm analysis," Journal of Economics, Springer, vol. 71(3), pages 281-304, October.
    13. R. Cellini & L. Lambertini, 2003. "Capital Accumulation and Horizontal Mergers in Differential Oligopoly Games," Working Papers 477, Dipartimento Scienze Economiche, Universita' di Bologna.
    14. Amir, Rabah & Diamantoudi, Effrosyni & Xue, Licun, 2009. "Merger performance under uncertain efficiency gains," International Journal of Industrial Organization, Elsevier, vol. 27(2), pages 264-273, March.
    15. Nathan H. Miller & Gloria Sheu, 2021. "Quantitative Methods for Evaluating the Unilateral Effects of Mergers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(1), pages 143-177, February.
    16. Keisuke Hattori & Lin Ming Hsin, 2014. "Complementary Alliances in Composite Good Markets with Network Structure," Manchester School, University of Manchester, vol. 82(1), pages 33-51, January.
    17. Ramón Faulí-Oller, 1999. "- Takeover Waves," Working Papers. Serie AD 1999-30, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    18. Neubecker, Leslie & Stadler, Manfred, 2003. "In hunt for size: Merger formation in the oil industry," Tübinger Diskussionsbeiträge 258, University of Tübingen, School of Business and Economics.
    19. José Méndez Naya, 2007. "Privatización y fusiones en oligopolios mixtos," Estudios de Economia, University of Chile, Department of Economics, vol. 34(1 Year 20), pages 37-52, June.
    20. Marina Tsygankova, 2007. "When is Mighty Gazprom Good for Russia?," Discussion Papers 526, Statistics Norway, Research Department.
    21. J. Peter Neary, 2007. "Cross-Border Mergers as Instruments of Comparative Advantage," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(4), pages 1229-1257.
    22. repec:ebl:ecbull:v:12:y:2008:i:3:p:1-7 is not listed on IDEAS
    23. José Méndez-Naya, 2008. "Merger profitability in mixed oligopoly," Journal of Economics, Springer, vol. 94(2), pages 167-176, July.
    24. Cathrine Hagem, 2008. "Incentives for merger in a noncompetitive permit market," Discussion Papers 568, Statistics Norway, Research Department.
    25. John S. Heywood & Matthew Mcginty, 2007. "Convex Costs And The Merger Paradox Revisited," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 342-349, April.

    More about this item

    Keywords

    Mergers; profitability;

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