Abstract
In this paper we consider a model of duopoly with differentiated products to examine the welfare effects of a merger between two asymmetric firms. We find that, for quantity competition, the parameter range for welfare-enhancing merger widens if the products are closer substitutes. On the other hand, mergers are never welfare enhancing in this setting when firms compete in prices.
| Original language | English |
|---|---|
| Pages (from-to) | 290-301 |
| Number of pages | 12 |
| Journal | Manchester School |
| Volume | 78 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - Jul 2010 |