This paper studies the welfare consequences of a vertical merger that raises rivals costs when downstream competition … is à la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can … paid by the non-merging firms the merger thereby shifts production away from those relatively inefficient producers in …

Recovery of stranded costs is perhaps the most litigious issue encountering regulators in promoting competition in … particular regulatory mechanism regularly employed in United States and also in Spain for settling stranded costs payments, the … competition and stranded costs recovery are not necessarily incompatible. Mechanism design is the key element in welfare analysis …

This paper provides a full characterization of the price effects of horizontal mergers in the Cournot model with … heterogeneous firms and constant returns to scale. We show that the price change brought about by a merger only depends on the … be seriously misleading. We also provide closed-form solutions for calibration that approximate merger effects on the …

This paper aims at investigating the impacts of introducing cost asymmetry in horizontal merger analysis. In the … absence of efficiency gains, previous literature states the negative competitive effects of a merger between symmetric firms … those of the merged entity, leading to higher total investments post-merger. Similarly, consumer surplus could be improved …