merger by either reducing or increasing both price and quality. Welfare implications are not clear-cut and mergers might …We study the effects of horizontal mergers when firms compete on quality and price. Two key factors are identified: (i … demand. The merging firms will increase (reduce) both quality and price if the degree of competition is sufficiently stronger …

merger by either reducing or increasing both price and quality. Welfare implications are not clear-cut and mergers might …We study the effects of horizontal mergers when firms compete on quality and price. Two key factors are identified: (i … demand. The merging firms will increase (reduce) both quality and price if the degree of competition is sufficiently stronger …

Using a spatial competition framework with three ex ante identical firms, we study the effects of a horizontal merger … and prices. Overall, a merger leads to higher average prices and quality in the market. The welfare implications of a … merger are not clear-cut. If the demand responsiveness to quality is sufficiently high, some consumers benefit from the …

increases competition between the contestants, leading to higher total contest effort, unless the ex-post bargaining strength of … stronger competition. …