Profitability of Horizontal Mergers in the Presence of Price Stickiness

H. Esfahani
Authors registered in the RePEc Author Service: Hadi Salehi Esfahani () and Hamideh Esfahani ()

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: 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)
Date: 2011-05
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp747

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