EconPapers    
Economics at your fingertips  
 

Whom should I merge with? How product substitutability affects merger profitability

Roberto Cellini ()
Additional contact information
Roberto Cellini: University of Catania

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2021, vol. 48, issue 3, No 2, 337-353

Abstract: Abstract The paper presents a simple model of oligopoly, in which three firms produce differentiated goods. The degree of product substitutability is not uniform across goods. Merger profitability from the firms’ perspective is investigated. The model shows that the merger profitability depends on the degree of good differentiation. Contrary to what seems to emerge from different models, merger between firms that supply “more similar” product is more profitable as compared to merger between firms supplying more differentiated goods.

Keywords: Oligopoly; Merger; Profitability; Merger paradox (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s40812-020-00180-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:epolin:v:48:y:2021:i:3:d:10.1007_s40812-020-00180-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40812

DOI: 10.1007/s40812-020-00180-9

Access Statistics for this article

Economia e Politica Industriale: Journal of Industrial and Business Economics is currently edited by C. Cambini, M.G. Colombo, L. Piscitello, L. Rondi and A. Zanfei

More articles in Economia e Politica Industriale: Journal of Industrial and Business Economics from Springer, Associazione Amici di Economia e Politica Industriale
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-10-02
Handle: RePEc:spr:epolin:v:48:y:2021:i:3:d:10.1007_s40812-020-00180-9