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dc.contributor.authorBrekke, Kurt Richard
dc.contributor.authorSiciliani, Luigi
dc.contributor.authorStraume, Odd Rune
dc.date.accessioned2014-02-10T08:56:36Z
dc.date.available2014-02-10T08:56:36Z
dc.date.issued2014-02
dc.identifier.issn0804-6824
dc.identifier.urihttp://hdl.handle.net/11250/163396
dc.description.abstractUsing a spatial competition framework with three ex ante identical firms, we study the effects of a horizontal merger on quality, price and welfare. The merging firms always reduce quality. They also increase prices if demand responsiveness to quality is sufficiently low. The non-merging firm, on the other hand, always responds by increasing both quality and prices. Overall, a merger leads to higher average prices and quality in the market. The welfare implications of a merger are not clear-cut. If the demand responsiveness to quality is sufficiently high, some consumers benefit from the merger and social welfare might also increase.no_NO
dc.language.isoengno_NO
dc.publisherNorwegian School of Economics. Department of Economicsno_NO
dc.relation.ispartofseriesDiscussion paper;4/2014
dc.subjecthorizontal mergersno_NO
dc.subjectqualityno_NO
dc.subjectspatial competitionno_NO
dc.titleHorizontal mergers and product qualityno_NO
dc.typeWorking paperno_NO
dc.subject.nsiVDP::Social science: 200::Economics: 210::Economics: 212no_NO
dc.subject.jelL13
dc.subject.jelL15
dc.subject.jelL41


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