The Profitability of Small Horizontal Mergers with Nonlinear Demand Functions

H. Esfahani and Luca Lambertini ()
Authors registered in the RePEc Author Service: Hadi Salehi Esfahani () and Hamideh Esfahani ()

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: We want to take a differential game approach with price dynamics to conduct an investigation into the consequences of horizontal merger of firms where the demand function is nonlinear. We take into consideration the open-loop equilibrium. We show that in relation to the fact that the demand is nonlinear and prices follow some stickiness an incentive for small merger exists, while it does not appear under the standard approach using a linear demand function.

JEL-codes: C73 D43 G34 L13 (search for similar items in EconPapers)
Date: 2011-02
New Economics Papers: this item is included in nep-cis, nep-com and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://amsacta.unibo.it/4513/1/WP728.pdf (application/pdf)

Related works:
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:bol:bodewp:wp728

Access Statistics for this paper

More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Bibliographic data for series maintained by Dipartimento Scienze Economiche, Universita' di Bologna ().