Beladi, Hamid; Mukherjee, Arijit - In: Journal of Economic Behavior & Organization 83 (2012) 2, pp. 186-194
We provide a new explanation for a profitable horizontal merger between Cournot oligopolists with symmetric constant returns to scale technologies and homogeneous goods. We show that a merger can be profitable if it prevents a foreign firm from undertaking FDI. Our result is due to the effect of...