Industrial Structure and Strategic Takeover in a Differentiated Market

Eric Giraud-Héraud (), Abdelhakim Hammoudi and M. Mokrane

Working Papers from Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor.

Abstract: We examine takeover strategies for a multiproduct firm operating in a horizontally differentiated market. We show why a strategic scheme for taking over competitors should obey a maximal market share connection principle. When trying to reinforce its market power, a multiproduct firm should try and connect its product lines because this renders its pricing policy more efficient.

Keywords: INDUSTRY; MARKET STRUCTURE; BUSINESS ORGANIZATION (search for similar items in EconPapers)
JEL-codes: D21 L11 L13 (search for similar items in EconPapers)
Pages: 26 pages
Date: 1999
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Working Paper: Industrial structure and strategic takeover in a differentiated market (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:pnegmi:99-34

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