Market Behavior under Acquisitions and Entry
نویسنده
چکیده
We address the question of whether unbarred market entry can eliminate monopolizing behavior in the presence of acquisitions. We model this question by using a four-stage repeated noncooperative game. Analysis of subgame perfect pure strategy Nash equilibria of this game under simplifying assumptions nds that even with entry and the absence of collusion, competitive acquisition of rms by their rivals may entail partial monopolization of a homogenous good industry. As well, acquisitions can be used to deter entry.
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