merger, insiders raise their prices more than the outsiders, so consumers search for good deals first at the non … customers, so mergers become unprofitable for sufficiently large search costs. This new merger paradox is more likely the higher …This paper studies the incentives to merge in a Bertrand competition model where firms sell differentiated products and …

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 …

show that a positive demand shock to one of the products decreases the price of another product, whereas it increases its … decrease, however, following a positive demand shock when the demands for each product are positively correlated. We also show … elastic with respect to search costs. A price difference between products increases as the demand gap between products …

incentives of firms to choose PMGs and show that an equilibrium where all firms off er PMGs does not exist because of a free …