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Market Concentration, Multi-Market Participation And Mergers In Network Industries

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  • Weisman Dennis L.

    (Department of Economics, Kansas State University)

Abstract

We use a Cournot model with complementary demands to derive sufficient conditions for mergers that increase market concentration and multi-market participation to lower prices, raise industry profits and hence increase economic welfare. Notably, these findings do not depend upon the realization of merger economies. This analysis may have special relevance for mergers in network industries, including the telecommunications and transportation industries, wherein policymakers have expressed concern about recent consolidation trends.

Suggested Citation

  • Weisman Dennis L., 2005. "Market Concentration, Multi-Market Participation And Mergers In Network Industries," Review of Network Economics, De Gruyter, vol. 4(2), pages 1-13, June.
    • Handle: RePEc:bpj:rneart:v:4:y:2005:i:2:n:2
    DOI: 10.2202/1446-9022.1069
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    Cited by:

    1. Edmond Baranes & Laurent Flochel, 2008. "Competition in telecommunication networks with call externalities," Journal of Regulatory Economics, Springer, vol. 34(1), pages 53-74, August.
    2. Dennis L. Weisman, 2020. "Complementarities as an antitrust defense," Competition and Regulation in Network Industries, , vol. 21(4), pages 344-366, December.

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