Huck, Steffen; Konrad, Kai A.; Müller, Wieland; … - Volkswirtschaftliche Fakultät, … - 2007
We study the merger paradox, a relative of Harsanyi's bargaining paradox, in an experiment. We examine bilateral mergers in experimental Cournot markets with initially three or four firms. Standard Cournot-Nash equilibrium predicts total outputs well. However, merged firms produce significantly...