The effects of merger have usually been examined in the context of homogeneous goods, and are unambiguously established. This paper deals with merger in vertically differentiated industries, presenting two models, one with two firms, and one with three firms. Results depend on the number of...

We set up a three-firm model of spatial competition to analyse how a merger affects the incentives for relocation, and conversely, how the possibility of relocation affects the profitability of the merger, particularly for the non-participating firm. The analysis is carried out for the...