Horizontal mergers for buyer power
- Bru Martínez, Lluís
- Faulí Oller, Ramon
Revue:
Working papers = Documentos de trabajo: Serie AD
Année de publication: 2003
Número: 32
Type: Working Paper
Résumé
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.