Spatial price discrimination and the merger paradox
نویسندگان
چکیده
A familiar result in the literature on mergers is that the principal beneficiaries from such activity are the firms which are excluded from participation. The possible existence of this ‘merger paradox’ contrasts strongly with the frequently expressed view that merger is anti-competitive. This paper examines the question within the context of a model of spatial competition in which firms choose their locations in anticipation of forming a merger, and practise price-discrimination. We allow for differences in firms’ shares in the benefits of merger, and for the possibility that the firms will attach probabilities to merger formation. 2000 Elsevier Science B.V. All rights reserved.
منابع مشابه
Designing and Identifying the Variables of the Pricing Model for the Company’s Brand Value in Merger and Acquisition Strategies
Strong brands bring numerous benefits for both the companies and their customers such as decreasing purchasing risk and searching cost and increasing the likelihood of repurchasing. It is not presented an applied model for determining the price of this asset in Iran, especially in terms of merger and acquisition. The purpose of this study is to develop a model for pricing brand value in Iran’s ...
متن کاملA Survey on the Existence of Price Discrimination Behavior in Iran’s Saffron Exporting Market by Using PTM Model
One of the most important effects of exchange rate movementsisitseffecton the exporting price of different products. According to the new trade theories, market structure plays an important role in relating exchange rate depreciations to price declines. In Iran, exchange rate has increased in recent years.Inspired by this assumption, this paper attempts to investigate the impact of exchange rat...
متن کاملHorizontal Mergers in Spatially Differentiated Noncooperative Markets: a Comment
A merger of two Cournot firms, who produce spatially differentiated products and engage in spatial price discrimination, creates a firm that is in some sense larger than its rivals. Nevertheless, we show that the merged firm is unable to translate this larger size into profit-increasing behavior unless the difference in the costs of the merging firms at the affected consumer locations is "suffi...
متن کاملThe Effect of Ketanserin and Pirenperone Injected into the CA1 Region on Spatial Discrimination
In the present study, the effect of 5-HT2A receptor blockers in CA1 region of rat hippocampus on spatial learning was assessed in a T-maze, a spatial discrimination task. Rats were canulated bilaterally and injected daily vehicle (saline), 5-HT2A-selective antagonist, ketanserin (0.6, 1.2 or 2.4 µg/0.5 µl) and pirenperone (0.1, 0.3, 1.2 or 2.4 µg/0.5 µl) into the cannula 30 minutes before train...
متن کاملMixed Pricing in Online Marketplaces
A rich theory literature predicts mixed strategies in posted prices due to standard price discrimination, search frictions, and various other rationales. While typically interpreted as implying occasional sales or price dispersion, online marketplaces enable a firm to truly use randomization as a tool in pricing, and so such behavior should be expected to arise in online settings. We investigat...
متن کامل