Monopolization through acquisitions in a differentiated product industry

Emilie Dargaud (1)

1 GATE - Groupe d'analyse et de théorie économique

This article analyzes the incentive to merge in a context of price competition with horizontal product differentiation. In contrast to the results obtained by Kamien and Zang (1990), we show that merged equilibria can appear in this game. Moreover monopolization of the industry occurs with a high number of firms.

Mots clés: cooperative game; mergers; oligopoly

Mots clés: fusions; jeu coopératif; oligopole

Domaines: Economies et finances

Emilie Dargaud. Monopolization through acquisitions in a differentiated product industry. 2005. ⟨halshs-00180041⟩