be visited by a consumer is equal acrossfirms not yet visited. However, in the short-run after a merger, because insiders …This paper studies the incentives to merge in a Bertrand competition model where firms sell differentiatedproducts and … consumers search for satisfactory deals. In the pre-merger symmetricequilibrium, the probability that a firm is the next one to …

post-merger. We show that this change in the search composition of demand makes mergers incentive-compatible for the firms … primary effects of a merger. Our main result is that the level of search costs are crucial in determining the incentives of …We study mergers in a market where N firms sell a homogeneous good and consumers search sequentially to discover prices …

to search, which modifies the search composition of demand such that demand can become more elastic. At the same time …, the consumers who choose to search reduce their search intensity, which makes demand less elastic. Whether the effect on …

search, which modifies the search composition of demand such that demand can become more elastic. At the same time, the … consumers who choose to search reduce their search intensity, which makes demand less elastic. Whether the effect on the …