BOCCARD, Nicolas - Center for Operations Research and Econometrics (CORE), … - 2009
The welfare impact of a merger involves the market power offense and the efficiency defense. Salant et al. (1983) show … for a profitable merger to increase welfare but leave open whether it exists. We characterize the degree of cost asymmetry …, we show that for most industry structures, a rationalization merger is more likely to be welfare enhancing but a synergy …