DE FEO, Giuseppe - Center for Operations Research and Econometrics (CORE), … - 2008
Farrell and Shapiro (1990), is that (not too large) mergers that are profitable are always welfare improving. In the present … the welfare loss due to a price increase and overestimate the effect of efficiency gains. Then, we prove that the … conditions for welfare improving mergers defined by Farrell and Shapiro (1990) hold true only when consumers are adversely …