A Note on Complementary Goods Mergers between Oligopolists with Market Power: Cournot Effects, Bundling and Antitrust
Antitrust policy in the US and EU toward non-horizontal mergers between oligopolists is based on a strong presumption of Cournot effects and/or improvements in consumer welfare through post-merger bundling. We show that complementary goods mergers between firms that possess market power in their respective components markets do not always assure either. The analysis underscores the importance of fully specifying the nature of pre-merger rivalry among all market participants and the assumed distribution of consumer preferences when making predictions about the likely effects of such transactions.
Year of publication: |
2014
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Authors: | Masson Robert T. ; Serdar, Dalkir ; David, Eisenstadt |
Published in: |
Review of Law & Economics. - De Gruyter, ISSN 1555-5879. - Vol. 10.2014, 1, p. 21-21
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Publisher: |
De Gruyter |
Saved in:
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