Profitable Horizontal Mergers Without Efficiencies Can Increase Consumer Surplus*

FS IV 01 – 05 Profitable Horizontal Mergers without Cost Advantages : The Role of Internal Organization , Information , and Market Structure

Profitable Horizontal Mergers without Cost Advantages: The Role of Internal Organization, Information, and Market Structure by Steffen Huck, Kai A. Konrad and Wieland Müller Merged firms are typically rather complex organizations. Accordingly, merger has a more profound effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal me...

Consumer Surplus in Online Auctions

Despite the growing research interest in Internet auctions, particularly those on eBay, little is known about the quantifiable consumer welfare accrued from such mechanisms. Using an ongoing novel field experiment, we collect and examine a unique dataset to empirically quantify and understand determinants of consumer surplus in eBay auctions. Our analysis, based on a sample of 5157 eBay auction...

Horizontal mergers with free entry

We consider the impact of horizontal mergers in the presence of free entry and exit. In contrast to much of the previous literature on horizontal mergers, our model yields predictions that seem intuitively reasonable: with only moderate cost synergies mergers of a small number of industry participants are beneficial (even under quantity competition), there is no “free rider problem” in that ins...

Horizontal Bank Mergers : Issues and

Horizontal Mergers: An Equilibrium Analysis

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