Merger results under price competition and plant-specific unions

This paper analyses the effects of a downstream merger in a differentiated duopoly under price competition and plant-specific unions. We show, in contrast with the preceding literature, that the standard welfare results may be reversed: a downstream merger may increase consumer surplus and overall welfare. In particular, this applies when unions are sufficiently wage-oriented and the market size is included in a certain intermediate range.

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Year of publication:	2012-03-01
Authors:	Fanti, Luciano ; Meccheri, Nicola
Institutions:	Dipartimento di Economia e Management, Università degli Studi di Pisa
Subject:	mergers \| social welfare \| price competition \| plant-specific unions

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Extent:	application/pdf
Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets ; J50 - Labor-Management Relations, Trade Unions, and Collective Bargaining. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010932990