Using a spatial competition framework with three ex ante identical firms, we study the effects of a horizontal merger … and prices. Overall, a merger leads to higher average prices and quality in the market. The welfare implications of a … merger are not clear-cut. If the demand responsiveness to quality is sufficiently high, some consumers benefit from the …

merger by either reducing or increasing both price and quality. Welfare implications are not clear-cut and mergers might …

pressure from binding capacity constraints, in addition to standard merger effects. We show that the pricing pressure terms … underlying ccGUPPI, calculated using pre-merger data, are sufficient to determine whether a merger of capacity-constrained firms … ccGUPPI is generally a useful proxy for actual price effects, with lower informational requirements than full merger …

One key concern in vertical merger cases is input foreclosure. Input foreclosure involves raising the costs of … competitors in the downstream market, which could in turn increase the sales and profits of the downstream merger partner. In this … article, we explain how the upward pricing pressure resulting from unilateral incentives following a vertical merger can be …

states of hyper-competition with supply shortages. We also analyze the impact of a change in firm size distribution. A merger …