Abstract

http://ssrn.com/abstract=1780987
 


 



The Profitability of Small Horizontal Mergers with Nonlinear Demand Functions


Hamideh Esfahani


affiliation not provided to SSRN

Luca Lambertini


University of Bologna - Department of Economics

January 2011

Quaderni DSE Working Paper No. 728

Abstract:     
We want to take a differential game approach with price dynamics to conduct an investigation into the consequences of horizontal merger of firms where the demand function is nonlinear. We take into consideration the open-loop equilibrium. We show that in relation to the fact that the demand is nonlinear and prices follow some stickiness an incentive for small merger exists, while it does not appear under the standard approach using a linear demand function.

Number of Pages in PDF File: 15

Keywords: Horizontal mergers, Differential game, Sticky price, Nonlinear demand

JEL Classification: C73, D43, G34, L13

working papers series


Download This Paper

Date posted: March 9, 2011  

Suggested Citation

Esfahani, Hamideh and Lambertini, Luca, The Profitability of Small Horizontal Mergers with Nonlinear Demand Functions (January 2011). Quaderni DSE Working Paper No. 728. Available at SSRN: http://ssrn.com/abstract=1780987 or http://dx.doi.org/10.2139/ssrn.1780987

Contact Information

Hamideh Esfahani (Contact Author)
affiliation not provided to SSRN ( email )
Luca Lambertini
University of Bologna - Department of Economics ( email )
Strada Maggiore 45
Bologna, 40125
Italy
+39 051 2092600 (Phone)
+39 051 2092664 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 176
Downloads: 14

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.312 seconds