Merger and Collusion in Contests

Steffen Huck, Kai Konrad and Wieland Müller

Journal of Institutional and Theoretical Economics (JITE), 2002, vol. 158, issue 4, 563-575

Abstract: Competition in some product markets takes the form of a contest. If some firms cooperate in such markets, they must decide how to allocate effort on each of their products and whether to reduce the number of their products in the competition. We show how this decision depends on the convexity properties of the contest success function, and we characterize conditions under which cooperation is profitable.

JEL-codes: D44 L11 L13 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (12)

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Working Paper: Merger and collusion in contests (2002)
Working Paper: Merger and collusion in contests (2001)
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