Beladi, Hamid and Chakrabarti, Avik and Marjit, Sugata (2010): Cross-border Merger, Vertical Structure, and Spatial Competition.
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This analysis is a natural follow up of continued efforts to assess the consequences of cross-border mergers in industries with a vertical structure. Absent free trade, in a vertically related industry, the downstream firms will not choose the social optimum under spatial price discrimination when none of the downstream firms produce all the varieties that consumers demand. We show that free trade will induce the downstream firms to gravitate toward the social optimum but an upstream merger across borders, under free trade, will pull the downstream firms away from the social optimum back to their autarkic positions.
|Item Type:||MPRA Paper|
|Original Title:||Cross-border Merger, Vertical Structure, and Spatial Competition|
|English Title:||Cross-border Merger, Vertical Structure, and Spatial Competition|
|Keywords:||Product-differentiation, Price-discrimination, Spatialcompetition, Firm-location, Cross-border Merger|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection
|Depositing User:||sugata marjit|
|Date Deposited:||18. Aug 2010 01:14|
|Last Modified:||15. Feb 2013 20:09|
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