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The ABC of complementary products mergers

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Listed:
  • Anderson, Simon P.
  • Loertscher, Simon
  • Schneider, Yves

Abstract

We present a simple model where mergers benefit consumers, harm outsiders and, depending on the shape of demand, can be profitable for insiders (and where mergers do not involve cost synergies).

Suggested Citation

  • Anderson, Simon P. & Loertscher, Simon & Schneider, Yves, 2010. "The ABC of complementary products mergers," Economics Letters, Elsevier, vol. 106(3), pages 212-215, March.
    • Handle: RePEc:eee:ecolet:v:106:y:2010:i:3:p:212-215
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    References listed on IDEAS

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    1. Jay Pil Choi, 2003. "Antitrust Analysis of Mergers with Bundling in Complementary Markets: Implications for Pricing, Innovation, and Compatibility Choice," Working Papers 03-02, NET Institute, revised Oct 2003.
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    6. Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(2), pages 185-199.
    7. R. Preston McAfee & John McMillan & Michael D. Whinston, 1989. "Multiproduct Monopoly, Commodity Bundling, and Correlation of Values," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(2), pages 371-383.
    8. Brueckner, Jan K. & Spiller, Pablo T., 1991. "Competition and mergers in airline networks," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 323-342, September.
    9. Ricardo Flores-Fillol & Rafael Moner-Colonques, 2007. "Strategic Formation of Airline Alliances," Journal of Transport Economics and Policy, University of Bath, vol. 41(3), pages 427-449, September.
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    Cited by:

    1. Laurent Linnemer, 2022. "Doubling Back on Double Marginalization," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 61(1), pages 1-19, August.
    2. Alexei Alexandrov & Russell Pittman & Olga Ukhaneva, 2018. "Pricing of Complements in the U.S. Freight Railroads: Cournot Versus Coase," EAG Discussions Papers 201801, Department of Justice, Antitrust Division.
    3. Ricardo Flores-Fillol & Rafael Moner-Colonques, 2011. "Endogenous Mergers of Complements with Mixed Bundling," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 39(3), pages 231-251, November.
    4. Alexandrov, Alexei & Pittman, Russell & Ukhaneva, Olga, 2017. "Royalty stacking in the U.S. freight railroads: Cournot vs. Coase," MPRA Paper 78249, University Library of Munich, Germany.
    5. Tsuyoshi Toshimitsu & Tetsuya Nakajima, 2021. "On the “merger paradox” in price competition with asymmetric product differentiation," Australian Economic Papers, Wiley Blackwell, vol. 60(1), pages 153-162, March.
    6. Vélez-Velásquez, Juan Sebastián, 2019. "Merger effects with product complementarity: Evidence from Colombia’s telecommunications," Information Economics and Policy, Elsevier, vol. 49(C).

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