The Farrell and Shapiro condition revisited

The purpose of this paper is to study the consequences of using the Farrell and Shapiro (1990) sufficient condition for merger approval to sectors in which a downstream horizontal merger may also affect upstream firms. As will be shown below, in some circumstances the sign of the relevant external effect can no longer be established by considering the merger as a sequence of in finitesimal mergers, each corresponding to a marginal change in output.

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Year of publication:	2007-12
Authors:	Brito, Duarte
Institutions:	Centro de Investigação em Inovação Empresarial e do Trabalho (IET), Faculdade de Ciências e Tecnologia
Subject:	Mergers

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Extent:	application/pdf
Series:	IET Working Papers Series. - ISSN 1646-8929.
Type of publication:	Book / Working Paper
Notes:	Number 01/2007 15 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005812879