Jaffe, Sonia; Weyl, E. Glen - In: American Economic Journal: Microeconomics 5 (2013) 4, pp. 188-218
Using information local to the premerger equilibrium, we derive approximations of the expected changes in prices and welfare generated by a merger. We extend the pricing pressure approach of recent work to allow for non-Bertrand conduct, adjusting the diversion ratio and incorporating the change...