Spatial market expansion through mergers

In this paper we present a model that studies firm mergers in a spatial setting. A new model is formulated that addresses the issue of finding the number of branches that have to be eliminated by a firm after merging with another one, in order to maximize profits. The model is then applied to an example of bank mergers in the city of Barcelona. Finally, a variant of the formulation that introduces competition is presented together with some conclusions.

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Year of publication:	2006-03
Authors:	Durán-Carbó, Verónica ; ReVelle, Charles ; Serra, Daniel
Institutions:	Department of Economics and Business, Universitat Pompeu Fabra
Subject:	Mergers \| facility location \| spatial competition

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Extent:	application/pdf
Series:	Economics Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; J80 - Labor Standards: National and International. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005772065