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Horizontal merger in bilaterally duopolistic industries with differentiated products

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  • Zouhaier M'Chirgui
  • Walid Hichri

Abstract

The purpose of this paper is to focus on the strategic decision as to whether or not merger is profitable according to the degree of final product differentiation in bilaterally duopolistic industries. We find that, under some conditions on the factor of substitution, a horizontal merger is profitable.

Suggested Citation

  • Zouhaier M'Chirgui & Walid Hichri, 2006. "Horizontal merger in bilaterally duopolistic industries with differentiated products," Applied Economics Letters, Taylor & Francis Journals, vol. 13(2), pages 93-95.
    • Handle: RePEc:taf:apeclt:v:13:y:2006:i:2:p:93-95
    DOI: 10.1080/13504850500390747
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    References listed on IDEAS

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    5. L. Lambertini & G. Rossini, 2003. "Vertical Integration and Differentiation in an Oligopoly with Process Innovating R&D," Working Papers 468, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Lommerud, Kjell Erik & Straume, Odd Rune & Sorgard, Lars, 2005. "Downstream merger with upstream market power," European Economic Review, Elsevier, vol. 49(3), pages 717-743, April.
    7. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
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