Merger and product range rivalry
Article Abstract:
A linear demand model is initially employed in three firms where there are two merger candidates. It has been found that results will vary if the number of brands as a choice variable is introduced. When a nonparticipating firm introduces a new brand, the merger will usually be welfare beneficial, but never profitable. When the merged firm lessens its product line, the merger can be profitable but not socially beneficial, unless the fixed cost of marketing a brand is increased and non-sunk brands become close substitutes.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1997
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Product differentiation and endogenous disutility
Article Abstract:
Neighbor exclusivity, or the existence of a single neighboring firm, can influence the manner in which firms design their products. A free general purposeness in product design invites only two firms to enter the market and entails a "fat-cat" strategic effect, where firms profit by being less effective. The entrance of more firms in the market, however, eliminates a highly focused product, and in turn reduces the strategic effect.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1997
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The incentives for takeover in oligopoly
Article Abstract:
The takeover incentives which considers insider's and outsider's gains in a merger are analyzed. The Cournot and Bertrand models that analyze the probability of a takeover are presented.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 2004
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