Horizontal Mergers: An Equilibrium Analysis Export

@article{citeulike:206107, abstract = {We analyze horizontal mergers in Cournot oligopoly. We find general conditions under which such mergers raise price, and show that any merger not creating synergies raises price. We develop a procedure for analyzing the effect of a merger on rivals and consumers and thus provide sufficient conditions for profitable mergers to raise welfare. We show that traditional merger analysis can be misleading in its use of the Herfindahl Index. Our analysis stresses the output responses of large firms not participating in the merger.}, author = {Farrell, Joseph and Shapiro, Carl}, citeulike-article-id = {206107}, citeulike-linkout-0 = {http://dx.doi.org/10.2307/2006737}, citeulike-linkout-1 = {http://www.jstor.org/stable/2006737}, doi = {10.2307/2006737}, journal = {The American Economic Review}, keywords = {mergers}, number = {1}, pages = {107--126}, posted-at = {2006-07-12 14:33:26}, priority = {2}, title = {Horizontal Mergers: An Equilibrium Analysis}, url = {http://dx.doi.org/10.2307/2006737}, volume = {80}, year = {1990} }

TY - JOUR ID - citeulike:206107 L3 - citeulike-article-id:206107 N2 - We analyze horizontal mergers in Cournot oligopoly. We find general conditions under which such mergers raise price, and show that any merger not creating synergies raises price. We develop a procedure for analyzing the effect of a merger on rivals and consumers and thus provide sufficient conditions for profitable mergers to raise welfare. We show that traditional merger analysis can be misleading in its use of the Herfindahl Index. Our analysis stresses the output responses of large firms not participating in the merger. IS - 1 JF - The American Economic Review EP - 126 TI - Horizontal Mergers: An Equilibrium Analysis VL - 80 SP - 107 KW - mergers AU - Farrell, Joseph AU - Shapiro, Carl PY - 1990/// UR - http://dx.doi.org/10.2307/2006737 ER -