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Unilateral effects of mergers with general linear demand

Jerry Hausman, Serge Moresi and Mark Rainey

Economics Letters, 2011, vol. 111, issue 2, 119-121

Abstract: We derive the formula for the unilateral price effects of mergers of two products with linear demand in the general asymmetric situation. The formula uses the same information required to calculate upward pricing pressure in the 2010 Horizontal Merger Guidelines.

Keywords: Horizontal; mergers; Unilateral; effects (search for similar items in EconPapers)
Date: 2011
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Handle: RePEc:eee:ecolet:v:111:y:2011:i:2:p:119-121