Mergers between asymmetric firms: profitability and welfare
Revue:
Working papers = Documentos de trabajo: Serie AD
Année de publication: 1998
Número: 13
Type: Working Paper
Résumé
Using only information on the degree of concavity of demand and observable structural variables as the market share of firms, a necessary and sufficient condition for a merger to increase welfare is derived. On the profitability side, we obtain that when market size decreases merger profitability increases.