The competitive effect of multi market contact

Guy Arie; Sarit Markovich; Mauricio J. Varela

Changes in the extent of multi-market contact (MMC) between firms often affect market outcomes – quantities and prices. We show that a strategic but purely competitive effect of changes in MMC can change the quantity provided in a market by a firm by as much as 50%, and the prices a firm sets by as much as 20%. This may have important welfare implications, specifically with regards to horizontal mergers. Studying mergers that span several markets, we show that a myopic merger policy may thwart a surplus-increasing merger wave. The analysis does not rely on any tacit or explicit collusive behavior by the firms

MoreLess

Year of publication:	2012
Authors:	Arie, Guy ; Markovich, Sarit ; Varela, Mauricio J.
Publisher:	Rochester, NY : Simon Graduate School of Business, Univ. of Rochester
Subject:	Multi-market contact \| horizontal mergers \| multi-market competition \| Theorie \| Theory \| Wettbewerb \| Competition \| Fusion \| Merger \| Horizontale Integration \| Horizontal integration

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	Online-Ressource (47 S.) graph. Darst.
Series:	Simon Business School working paper. - Rochester, NY : [Verlag nicht ermittelbar], ZDB-ID 2452756-7. - Vol. 12-12
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	10.2139/ssrn.2118822 [DOI]
Classification:	D24 - Production; Capital and Total Factor Productivity; Capacity ; D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets ; L93 - Air Transportation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009699389