Huck, Steffen; Konrad, Kai A.; Müller, Wieland
(25. April 2000):
Profitable horizontal mergers: A market structureoriented view.
Discussion Papers, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes
Volltext auf 'Open Access LMU' nicht verfügbar.
We propose a model in which mergers exert a more pronounced effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal mergers profitable and welfare-improving even if costs are linear. The results help to reconcile theory with various empirical findings on mergers.