Profitability of Horizontal Mergers in the Presence of Price Stickiness
Authors registered in the RePEc Author Service: Hamideh Esfahani () and
Hadi Salehi Esfahani ()
Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna
In this paper, we investigate the profitability of horizontal mergers of firms with price adjustments. We take a di¤erential game approach and both the open-loop as well as the closed-loop equlibria are considered. We show that the merger incentive is determined by how fast the price adapts to the equilibrium level.
JEL-codes: C73 D43 L13 (search for similar items in EconPapers)
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Persistent link: http://EconPapers.repec.org/RePEc:bol:bodewp:wp747
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