Skip to main content

Endogenous mergers and cost heterogeneity

Buy Article:

$55.00 plus tax (Refund Policy)

The objective of this article is to analyze the effect of firms' heterogeneity on their incentives to merge. To reach this target, merger decisions are modelled as endogenous. To simplify the analysis, we focus on the extreme case where merger leads to monopolization. Kamien and Zang (1990, 1993) give monopolization conditions in static and dynamic acquisition games. Introducing cost heterogeneity in a n-firm industry, we provide more general monopolization conditions. Indeed, we show that any industry can be monopolized if cost heterogeneity is large enough. This result provides new information to competition authorities on concentration possibilities and allows them to focus particularly on some industries.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Document Type: Research Article

Affiliations: LASER-CREDEN University of Montpellier 1:, Montpellier, Cedex 2, France

Publication date: 2008-07-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more