Ray Chaudhuri, A.; Benchekroun, H. - Tilburg University, Center for Economic Research - 2008
In a two-country model where firms behave à la Cournot, we show that marginal and non-marginal trade liberalization have different effects on the social desirability of horizontal mergers. Marginal tariff reductions increase (decrease) the desirability of merger at sufficiently low (high)...