A ROBUST TEST FOR CONSUMER WELFARE ENHANCING MERGERS AMONG SELLERS OFA HOMOGENEOUS PRODUCT

Authors
FROEB LM WERDEN GJ
Citation
Lm. Froeb et Gj. Werden, A ROBUST TEST FOR CONSUMER WELFARE ENHANCING MERGERS AMONG SELLERS OFA HOMOGENEOUS PRODUCT, Economics letters, 58(3), 1998, pp. 367-369
Citations number
5
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
58
Issue
3
Year of publication
1998
Pages
367 - 369
Database
ISI
SICI code
0165-1765(1998)58:3<367:ARTFCW>2.0.ZU;2-R
Abstract
Antitrust enforcement agencies and courts use net effect on price as a touchstone for the legality of mergers. This paper derives a simple c ondition for implementing that standard when industry equilibrium is s tatic Nash in quantities (Cournot), and that condition is robust to di fferent specifications of demand and cost. (C) 1998 Elsevier Science S .A.