Cost-reducing horizontal mergers that leave prices unchanged in models of spatial competition

Authors
Braid, RM
Citation
Rm. Braid, Cost-reducing horizontal mergers that leave prices unchanged in models of spatial competition, ECON LETT, 71(3), 2001, pp. 421-427
Citations number
15
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
71
Issue
3
Year of publication
2001
Pages
421 - 427
Database
ISI
SICI code
0165-1765(200106)71:3<421:CHMTLP>2.0.ZU;2-E
Abstract
Horizontal mergers between two (or more) adjacent firms may leave prices un changed. In the simplest cases, this happens if each of two merging firms h as a marginal cost decrease equal to 1/(n - 1) times the pre-merger price m arkup, if each store has a nearest neighbors. (C) 2001 Elsevier Science B;V . All rights reserved.