Mergers in Cournot Markets with Environmental Externality and Product Differentiation

Luis Gautier () and Mahelet Fikru ()
Additional contact information
Luis Gautier: Universidad de Málaga, Departamento de Teoría e Historia Econòmica

Chapter Chapter 2 in Handbook of Merger Control and Environmental Policy, 2024, pp 21-46 from Springer

Abstract: Abstract Due to the extensive work on why mergers take place, our understanding of merger incentives has improved. However, there are not many studies examining how differences in pollution parameters between post- and pre-merger markets affect the attractiveness of merger deals. This chapter examines conditions under which the attractiveness of a merger deal increases in a Cournot market with product differentiation and environmental externality. Our findings suggest that (i) the attractiveness of a deal increases as products become more differentiated, (ii) merger deals could result in lower optimal emission tax post-merger, (iii) the attractiveness of a deal is more likely to increase if the merged entity is not too pollution-intensive post-merger relative to its pre-merger pollution intensity; and (iv) when merged entities modify products to be greener, they are more likely to benefit more from the deal if they are not too pollution-intensive.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Mergers in Cournot markets with environmental externality and product differentiation (2016)
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:spr:nrmchp:978-3-031-63549-6_2

Ordering information: This item can be ordered from
http://www.springer.com/9783031635496

DOI: 10.1007/978-3-031-63549-6_2

Access Statistics for this chapter

More chapters in Natural Resource Management and Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().