Welfare Enhancing Mergers Under Product Differentiation

Tina Kao () and Flavio Menezes

ANU Working Papers in Economics and Econometrics from Australian National University, College of Business and Economics, School of Economics

Abstract: This paper considers a model of duopoly with differentiated products to examine the welfare effects of a merger between two asymmetric firms. We find that for quantity competition, the parameter range for welfare enhancing merger widens if the products are closer substitutes. On the other hand, mergers are never welfare enhancing in this setting when firms compete in prices.

JEL-codes: L11 L12 (search for similar items in EconPapers)
Pages: 14 Pages
Date: 2009-10
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cbe.anu.edu.au/researchpapers/econ/wp508.pdf (application/pdf)

Related works:
Journal Article: WELFARE‐ENHANCING MERGERS UNDER PRODUCT DIFFERENTIATION (2010)
Working Paper: Welfare Enhancing Mergers under Product Differentiation (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:acb:cbeeco:2009-508

Access Statistics for this paper

More papers in ANU Working Papers in Economics and Econometrics from Australian National University, College of Business and Economics, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().