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merger will be effectively realised. Moreover, the paper offers a possible explanation for merger failures. …
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merger will be effectively realised. Moreover, the paper offers a possible explanation for merger failures. …
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In this paper, we investigate the profitability of horizontal mergers of firms with price adjustments. We take a … differential game approach and both the open-loop as well as the closed-loop equlibria are considered. We show that the merger … incentive is determined by how fast the price adapts to the equilibrium level. …
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