The profitability of small horizontal mergers with nonlinear demand functions

The profitability of small horizontal mergers with nonlinear demand functions

We want to take a differential game approach with price dynamics to conduct an investigation into the consequences of horizontal merger of firms where the demand function is nonlinear. We take into consideration the open-loop equilibrium. We show that in relation to the fact that the demand is nonlinear and prices follow some stickiness an incentive for small merger exists, while it does not ap...

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...

On the Profitability of Media Mergers

We examine the incentives for non-consolidating mergers in commercial media industries. In a model with differentiated media and products, it is shown that such a merger can be profitable since it gives merging media firms a bargaining advantage vis-àvis advertisers in the negotiations for advertising space. The extent to which this bargaining advantage yields profitable conditions for a merger...

Horizontal Bank Mergers : Issues and

“the effect of risk aversion on the demand for life insurance: the case of iranian life insurance market”

abstract: about 60% of total premium of insurance industry is pertained?to life policies in the world; while the life insurance total premium in iran is less than 6% of total premium in insurance industry in 2008 (sigma, no 3/2009). among the reasons that discourage the life insurance industry is the problem of adverse selection. adverse selection theory describes a situation where the inf...