Konrad, Kai A. - Wissenschaftszentrum Berlin für Sozialforschung (WZB) - 2010
We study the equilibrium effects of mergers between firms with brand portfolios and brand loyal customers for pricing and profitability. We find that the merger paradox (Salant, Switzer and Reynolds 1983) is absent in these markets. The acquisition of brand portfolios can be profit enhancing for...