Monopolization Through Acquisitions in a Differentiated Product Industry

19 Pages Posted: 13 Jun 2006 Last revised: 10 May 2010

Date Written: June 1, 2005

Abstract

This article analyzes the incentive to merge in a context of price competition with horizontal product differentiation. In contrast to the results obtained by Kamien and Zang (1990), we show that merged equilibria can appear in this game. Moreover monopolization of the industry occurs with a high number of firms.

Keywords: cooperative game, mergers, oligopoly

JEL Classification: L10, L11, L20

Suggested Citation

Dargaud, Emilie, Monopolization Through Acquisitions in a Differentiated Product Industry (June 1, 2005). Available at SSRN: https://ssrn.com/abstract=907035 or http://dx.doi.org/10.2139/ssrn.907035

Emilie Dargaud (Contact Author)

University of Lyon 2 ( email )

France

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