Autore
Georgantzis, Nikolaos

Titolo
The effect of mergers on potential competition under economies or diseconomies of joint production
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1992 - Fascicolo: 67 - Pagina iniziale: 1 - Pagina finale: 45

The merger of two single-product manufacturers into a multi-product firm leads to the joint production of two goods which in the pre-merger industry configuration were produced separately. Given that, pre-merger, the two firms participate in different markets, the merger does not affect the number of firms per market. The merger is socially desirable if it does not cause product-specific marginal costs to rise. However, if firms are potential rivals, the merger offers them a more profitable but socially undesirable alternative. Efficiency gains from such a merger cannot compensate social losses from less potential competition.



Testo completo: http://hdl.handle.net/1814/418

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