On merger profitability in a cournot setting

  1. Faulí Oller, Ramon
Journal:
Working papers = Documentos de trabajo: Serie AD

Year of publication: 1997

Issue: 3

Type: Working paper

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Abstract

In a setting where symmetric firms compete a la Cournot and costs are linear, the degree of concavity is identified as the main determinant of merger profitability. This allows to generalize the results in Salant et al (1983) and Cheung (1992).

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