Mendi, Pedro; Veszteg, Róbert - In: Economics Bulletin 12 (2007) 23, pp. 1-8
In this note, we suggest a link between tariff protection and firms' incentives to engage in a horizontal merger. We consider a Cournot oligopoly with equal, constant marginal costs where firms have to decide on lobbying efforts prior to choosing output. These lobbying efforts will determine...