In the traditional Cournot model producers influence each other’s decisions through revenue earned in the product market. Rosen (1965) introduced the notion of a coupled constraints equilibrium which allowed players to affect their rivals’ strategy space as well. Krawczyk (2005) applied this...

Farrell and Shapiro proposed a simple test of the possible upward pricing pressure (UPP) following a merger. They showed that the test may give false negatives, that is, indicate that a merger may not give an UPP, while a more comprehensive test would indicate the opposite. We show that their...