G2TT
来源类型Discussion paper
规范类型论文
来源IDDP9374
DP9374 Search Costs, Demand-Side Economies and the Incentives to Merge under Bertrand Competition
José-Luis Moraga-González; Vaiva Petrikaite
发表日期2013-03-03
出版年2013
语种英语
摘要We study the incentives to merge in a Bertrand competition model where firms sell differentiated products and consumers search sequentially for satisfactory deals. In the pre-merger symmetric equilibrium, consumers visit firmsrandomly. However, after a merger, because insiders raise their prices more than the outsiders, consumers start searching for good deals at the non-merging stores, and only when they do not find a satisfactory product there they visit the merging firms. As search costs go up, consumer traffic from the non-merging firms to the merged ones decreases and eventually mergers become unprofitable. This new merger paradox can be overcome if the merged entity chooses to stock each of its stores with all the products of the constituent firms, which generates sizable search economies. We show that such demand-side economies can confer the merging firms a prominent position in the marketplace, in which case their price may even be lower than the price of the non-merging firms. In that situation, consumers start searching for a satisfactory good at the merged entity and the firms outside the merger lose out. When search economies are sufficiently large, a merger is beneficial for consumers too, and overall welfare increases.
主题Industrial Organization
关键词Mergers Insiders Outsiders Short-run Long-run Consumer search Demand-side economies Economies of search Orders of search Sequential search
URLhttps://cepr.org/publications/dp9374
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/538209
推荐引用方式
GB/T 7714
José-Luis Moraga-González,Vaiva Petrikaite. DP9374 Search Costs, Demand-Side Economies and the Incentives to Merge under Bertrand Competition. 2013.
条目包含的文件
条目无相关文件。
个性服务
推荐该条目
保存到收藏夹
导出为Endnote文件
谷歌学术
谷歌学术中相似的文章
[José-Luis Moraga-González]的文章
[Vaiva Petrikaite]的文章
百度学术
百度学术中相似的文章
[José-Luis Moraga-González]的文章
[Vaiva Petrikaite]的文章
必应学术
必应学术中相似的文章
[José-Luis Moraga-González]的文章
[Vaiva Petrikaite]的文章
相关权益政策
暂无数据
收藏/分享

除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。