We study the profitability incentives of merger and the endogenous industry structure in a strategic trade policy … environment. Merger changes the strategic trade policy equlilibrium. We show that merger can be profitable and welfare enhancing …. incentives to give subsidies to their local firms. National merger induces more strategic trade policy, whereas international …

We study the profitability incentives of merger and the endogenous industry structure in a strategic trade policy … environment. Merger changes the strategic trade policy equlilibrium. We show that merger can be profitable and welfare enhancing …. incentives to give subsidies to their local firms. National merger induces more strategic trade policy, whereas international …

The seminal paper by Salant, Switzer and Reynolds (1983) showed that merger in a standard Cournot framework with linear … demand and linear costs is not profitable unless a large majority of the firms are involved in the merger. However, many … recurring to cost savings of merger. Firms interact with each other, with customers, suppliers, their owners, and with …