The Profitability of Small Horizontal Mergers with Nonlinear Demand Functions

We want to take a differential game approach with price dynamics to conduct an investigation into the consequences of horizontal merger of firms where the demand function is nonlinear. We take into consideration the open-loop equilibrium. We show that in relation to the fact that the demand is nonlinear and prices follow some stickiness an incentive for small merger exists, while it does not appear under the standard approach using a linear demand function

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Year of publication:	2011
Authors:	Esfahani, Hamideh
Other Persons:	Lambertini, Luca (contributor)
Publisher:	[2011]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Fusion \| Merger \| Horizontale Integration \| Horizontal integration \| Rentabilität \| Profitability

Extent:	1 Online-Ressource (15 p)
Series:	Quaderni DSE Working Paper ; No. 728
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 2011 erstellt
Other identifiers:	10.2139/ssrn.1780987 [DOI]
Classification:	C73 - Stochastic and Dynamic Games ; D43 - Oligopoly and Other Forms of Market Imperfection ; G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; L13 - Oligopoly and Other Imperfect Markets
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013128775