HORIZONTAL MERGERS FOR BUYER POWER

Ramón Faulí-Oller () and Lluis Bru
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Ramón Faulí-Oller: Universidad de Alicante

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: Salant et al. (1983) showed in a Cournot setting that horizontal mergers are unprofitable because outsiders react by increasing their output. We show that this negative effect may be compensated by the positive effect that horizontal mergers have on the buyer power of merging firms in input markets.

Keywords: buyer power; mergers; input markets. (search for similar items in EconPapers)
JEL-codes: L11 L20 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2003-09
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http://www.ivie.es/downloads/docs/wpasad/wpasad-2003-32.pdf Fisrt version / Primera version, 2003 (application/pdf)

Related works:
Journal Article: Horizontal mergers for buyer power (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2003-32

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