Does Entry Improve Welfare ? A General Equilibrium Approach of Competition Policy
Bertrand Crettez and
Additional contact information
Bertrand Crettez: Crest
No 2005-08, Working Papers from Center for Research in Economics and Statistics
We consider a general equilibrium model under imperfect competition. Firms have constantreturns, they are price taker in the input market and compete à la Cournot in theproduct market. We assume a representative consumer exists. We show that an increase inthe number of firms of a given market does not always improve welfare, challenging thecommon idea according to which mergers with no cost synergy are not desirable for theconsumer.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://crest.science/RePEc/wpstorage/2005-08.pdf Crest working paper version (application/pdf)
Journal Article: Does entry improve welfare? A general equilibrium approach to competition policy (2009)
Working Paper: Does entry improve welfare? A general equilibrium approach to competition policy (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:crs:wpaper:2005-08
Access Statistics for this paper
More papers in Working Papers from Center for Research in Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Sri Srikandan ().