Abstract

http://ssrn.com/abstract=1119635
 
 

References (27)



 
 

Citations (16)



 


 



Post-Merger Product Repositioning


Amit Gandhi


University of Wisconsin - Madison

Luke Froeb


Vanderbilt University - Strategy and Business Economics

Steven Tschantz


Vanderbilt University - Department of Mathematics

Gregory J. Werden


affiliation not provided to SSRN


The Journal of Industrial Economics, Vol. 56, Issue 1, pp. 49-67, March 2008

Abstract:     
This paper analyzes the effects of mergers between firms competing by simultaneously choosing price and location. Products combined by a merger are repositioned away from each other to reduce cannibalization, and non-merging substitutes are, in response, repositioned between the merged products. This repositioning greatly reduces the merged firm's incentive to raise prices and thus substantially mitigates the anticompetitive effects of the merger. Computation of, and selection among, equilibria is done with a novel technique known as the stochastic response dynamic, which does not require the computation of first-order conditions.

Number of Pages in PDF File: 19

Accepted Paper Series





Date posted: April 14, 2008  

Suggested Citation

Gandhi, Amit and Froeb, Luke and Tschantz, Steven and Werden, Gregory J., Post-Merger Product Repositioning. The Journal of Industrial Economics, Vol. 56, Issue 1, pp. 49-67, March 2008. Available at SSRN: http://ssrn.com/abstract=1119635 or http://dx.doi.org/10.1111/j.1467-6451.2008.00332.x

Contact Information

Amit Gandhi (Contact Author)
University of Wisconsin - Madison ( email )
716 Langdon Street
Madison, WI 53706-1481
United States
Luke M. Froeb
Vanderbilt University - Strategy and Business Economics ( email )
Nashville, TN 37203
United States
615-322-9057 (Phone)
615-343-7177 (Fax)

Steven T. Tschantz
Vanderbilt University - Department of Mathematics ( email )
Nashville, TN 37240
United States
Gregory J. Werden
affiliation not provided to SSRN
Feedback to SSRN


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References:  27
Citations:  16

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