Assessing the anticompetitive effect of mergers for market power
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Universitat d'Alacant
info
ISSN: 0219-1989, 1793-6675
Ano de publicación: 2002
Volume: 4
Número: 4
Páxinas: 449-458
Tipo: Artigo
Outras publicacións en: International Game Theory Review
Resumo
In a symmetric setting with constant marginal costs, the welfare loss from mergers depends on the aggregate response of non-participating firms. This response in turn depends on the degree of concavity of the demand. As the degree of concavity of demand is not observable, we obtain conditions that guarantee that the premerger elasticity of demand can be used for antitrust purposes.