Merger and Product Range Rivalery

Kjell Lommerud () and Lars Sørgard

Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen

Abstract: The received literature concludes that if scale economies are absent, mergers are often unprofitable under Cornot competition, but always profitable under Bertrand. In a linear demand model with three firms initially, where there are two merger candidates, we show that results will change if we introduce the number of brands as a choice variable.

Keywords: MERGERS; PRODUCTS (search for similar items in EconPapers)
JEL-codes: L13 L41 (search for similar items in EconPapers)
Pages: 19 pages
Date: 1997
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Citations: View citations in EconPapers (2)

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Journal Article: Merger and product range rivalry (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:bereco:165

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