Mergers in Durable Goods Industries

Amagoia Sagasta and Ana Saracho

No 1988-088X, DFAEII Working Papers from University of the Basque Country - Department of Foundations of Economic Analysis II

Abstract: This paper is concerned with the study of durability as an aspect of competition and market structure that contributes to determining the incentives for mergers. We find that relative to the incentives in industries that produce non-durable goods the durability of the good produced by an industry enhances the incentive for mergers in the presence of intertemporal consistency problems. Further, the analysis indicates that in durable good markets a good antitrust policy should combine a restriction to rent solely with a prudent merger policy.

Keywords: durable goods; mergers; intertemporal consistency; strategic behavior (search for similar items in EconPapers)
Date: 2004
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Journal Article: Mergers in durable goods industries (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ehu:dfaeii:6610

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Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

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