Abstract

HERRERA SAAVEDRA, Juan Pablo  and  SANCHEZ NAVARRO, Dennis. THE EFFECTS OF FIRM MERGERS ON HOMOGENOUS GOODS MARKETS. Finanz. polit. econ. [online]. 2016, vol.8, n.1, pp.157-164. ISSN 2248-6046.  https://doi.org/10.14718/revfinanzpolitecon.2016.8.1.8.

This article models the potential effects of firm mergers on the price of a market for homogenous goods. The analysis is carried out according to two scenarios: a) firms have similar levels of technology at their disposal and b) a degree of heterogeneity is assumed between groups of firms. It is found that even when mechanisms are in place to favor efficiency in product supply, there is a risk that prices will increase.

Keywords : Oligopoly; Cournot; homogenous goods; firm behavior; production; non-cooperative games.

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