Spatial market expansion through mergers

Verónica Durán-Carbó, Charles ReVelle and Daniel Serra ()

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: In this paper we present a model that studies firm mergers in a spatial setting. A new model is formulated that addresses the issue of finding the number of branches that have to be eliminated by a firm after merging with another one, in order to maximize profits. The model is then applied to an example of bank mergers in the city of Barcelona. Finally, a variant of the formulation that introduces competition is presented together with some conclusions.

Keywords: Mergers; facility location; spatial competition (search for similar items in EconPapers)
JEL-codes: C61 J80 (search for similar items in EconPapers)
Date: 2006-03
New Economics Papers: this item is included in nep-com, nep-cse, nep-ind and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:960

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