Esfahani, Hamideh; Lambertini, Luca - 2011 - This draft: January 2011
horizontal merger of firms where the demand function is nonlinear. We take into consideration the open-loop equilibrium. We show … that in relation to the fact that the demand is nonlinear and prices follow some stickiness an incentive for small merger … exists, while it does not appear under the standard approach using a linear demand function. …