Strategic trade policy and merger profitability

Steffen Huck, Kai A. Konrad

We study the profitability incentives of merger and the endogenous industry structure in a strategic trade policy environment. Merger changes the strategic trade policy equlilibrium. We show that merger can be profitable and welfare enhancing here, even though it would not be profitable in a laissez-faire economy. A key element is the change in the governments. incentives to give subsidies to their local firms. National merger induces more strategic trade policy, whereas international merger does not.

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Year of publication:	March 2003
Authors:	Huck, Steffen ; Konrad, Kai A.
Publisher:	Munich : CESifo, Center for Economic Studies & Ifo Institute
Subject:	merger incentives \| strategic trade policy \| Fusion \| Merger \| Rentabilität \| Profitability \| Strategische Handelspolitik \| Strategic trade policy \| Subvention \| Subsidy \| Oligopol \| Oligopoly \| Zwei-Länder-Modell \| Two-country model \| Wohlfahrtsanalyse \| Welfare analysis \| Theorie \| Theory

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Extent:	1 Online-Ressource (circa 27 Seiten) Illustrationen
Series:	CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. no. 948
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/76383 [Handle]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; D44 - Auctions ; F12 - Models of Trade with Imperfect Competition and Scale Economies ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L13 - Oligopoly and Other Imperfect Markets
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011507913