Shiou, Shieh; Chi-Fei, Huang; Hsiao-Chi, Chen - In: The B.E. Journal of Economic Analysis & Policy 13 (2013) 1, pp. 453-484
We analyze the welfare effects of horizontal mergers in a model wherein firms produce differentiated products and possess asymmetric information about uncertain market demand. Mergers do not bring about synergies or cost savings, but do allow firms to share their market demand information. We...