Title: HORIZONTAL MERGER WITH AN INEFFICIENT LEADER
Abstract: The Manchester SchoolVolume 78, Issue 5 p. 379-394 HORIZONTAL MERGER WITH AN INEFFICIENT LEADER JUAN ALEJANDRO GELVES, JUAN ALEJANDRO GELVES University of Wisconsin-Milwaukee Manuscript received 7.4.08; final version received 23.1.09. I would like to thank Matthew McGinty, John Heywood and referees for comments and suggestions.Search for more papers by this author JUAN ALEJANDRO GELVES, JUAN ALEJANDRO GELVES University of Wisconsin-Milwaukee Manuscript received 7.4.08; final version received 23.1.09. I would like to thank Matthew McGinty, John Heywood and referees for comments and suggestions.Search for more papers by this author First published: 03 August 2010 https://doi.org/10.1111/j.1467-9957.2009.02144.xCitations: 7 Manuscript received 7.4.08; final version received 23.1.09. I would like to thank Matthew McGinty, John Heywood and referees for comments and suggestions. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Abstract In this paper we analyze two-firm horizontal mergers between an inefficient leader and an efficient follower. The merger is profitable and may decrease price (increase welfare) if the market size is large enough. Furthermore, a merger involving a leader which decreases price hurts outsider firms and therefore resolves the free-rider component of the merger paradox. Finally, it is shown that, when the market is large, these mergers always increase welfare regardless of the size of the cost asymmetry between leader and follower. Citing Literature Volume78, Issue5September 2010Pages 379-394 RelatedInformation
Publication Year: 2010
Publication Date: 2010-06-08
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 11
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