setup where one manufacturer with a non-linear cost function sells to two locally competitive retail markets. We show that … the downstream efficiency of the merging parties. When the upstream cost function is convex, we find that there are …. We obtain the opposite results, "anti-waterbed effects," if the merger is inefficient. When the cost function is concave …

investigate evidence of IRS at the industry level. Using an econometric approach based on the estimation of the translog cost … function and its associated cost share equations, we identify the sectors characterized by increasing returns to scale …

Criterion ; SCHWARZ Information Criterion ; Translog Cost Function …

setup where one manufacturer with a non-linear cost function sells to two locally competitive retail markets. We show that … the downstream efficiency of the merging parties. When the upstream cost function is convex, we find that there are …. We obtain the opposite results, "anti-waterbed effects", if the merger is inefficient. When the cost function is concave …

usefulness in empirical applications. -- Information Criteria ; translog cost function ; cross-price elasticities …