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International trade and the incentive for merger
[journal article]
Abstract
This paper examines the profitability of horizontal merger in an open economy with Cournot competition. We find that duopoly is a necessary, but not sufficient, condition for domestic merger to be profitable. A cross-border merger, however, can be profitable from any market structure.
Classification
Political Economy
Free Keywords
merger; international trade; oligopoly
Document language
English
Publication Year
2010
Page/Pages
9 p.
Journal
Applied Economics (2010)
DOI
https://doi.org/10.1080/00036840903527171
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)