Monopolization Through Acquisitions in a Differentiated Product Industry
19 Pages Posted: 13 Jun 2006 Last revised: 10 May 2010
Date Written: June 1, 2005
This article analyzes the incentive to merge in a context of price competition with horizontal product differentiation. In contrast to the results obtained by Kamien and Zang (1990), we show that merged equilibria can appear in this game. Moreover monopolization of the industry occurs with a high number of firms.
Keywords: cooperative game, mergers, oligopoly
JEL Classification: L10, L11, L20
Suggested Citation: Suggested Citation