Unilateral Competitive Effects of Horizontal Mergers Ii

Download or read book Unilateral Competitive Effects of Horizontal Mergers Ii written by Gregory J. Werden and published by . This book was released on 2012 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Horizontal mergers give rise to unilateral anticompetitive effects if they cause the merged firm to act less intensely competitive than the merging firms, while non-merging rivals do not alter their competitive strategies. This chapter describes the economic theory underlying unilateral competitive effects from mergers when prices are set through an auction or bargaining process. In the auction context, this chapter also describes the quantitative application of this theory in predicting the unilateral price effects of proposed mergers.