faces competition from a slower but betteraccessible transport mode. To access the fast transport network individuals haveto … presence of competition the profit-maximizingand socially optimal decision would be to cluster the two stations. Bycontrast, in … the absence of competition both a profit-maximizing firm and a socialplanner would locate the two stations on opposite …

primary effects of a merger. Our main result is that the level of search costs are crucial in determining the incentives of … profitable for the merging firms. If search costs are relatively high instead, a merger causes a fall in average price and this … triggers search. As a result, non-shoppers who didn’t find it worthwhile to search in the pre-merger situation, start searching …

This paper studies the incentives to merge in a Bertrand competition model where firms sell differentiatedproducts and … consumers search for satisfactory deals. In the pre-merger symmetricequilibrium, the probability that a firm is the next one to … be visited by a consumer is equal acrossfirms not yet visited. However, in the short-run after a merger, because insiders …

See also the article <I>Search Costs, Demand-side Economies, and the Incentives to merge under Bertrand Competition … satisfactory deals. In the pre-merger market equilibrium, all firms lookalike and so the probability a firm is next in the queue … consumers follow whenvisiting firms is equal across non-visited firms. However, after a merger,insiders raise their prices more …

intensity, increased competition does not affect expected price, leads to greater price dispersion and welfare declines. In … contrast when consumers search with high intensity, increased competition results in lower prices when the number of …