English, Article, Journal or magazine article edition: Cooperative merger and joint maximization under sequential entry Robert Rothschild; John S Heywood; Kristen Monaco

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Bookmark: http://trove.nla.gov.au/version/59258
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Cooperative merger and joint maximization under sequential entry
Author
  • Robert Rothschild
  • John S Heywood
  • Kristen Monaco
Physical Description
  • preprint
Notes
  • This paper explores the concept of cooperative merger between two of three entrants that arrive sequentially in a spatial market and practise discriminatory pricing. In this framework, in contrast to much of the theoretical literature, the so-called 'merger paradox' can be comprehensively overturned. We compare our results with those arising when one firm stategically locates two plants. Although this second problem is superficially similar to the first, the underlying behaviour and implications differ in crucial respects. The welfare consequences of all our results are demonstrated.
  • Spatial price discrimination, sequential entry, cooperative merger, merger paradox, multi-plant location
  • RePEc:lan:wpaper:000152
Language
  • English
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