An Aggregative Games Approach to Merger Analysis in Multiproduct‐Firm Oligopoly.

Using an aggregative games approach, we analyze horizontal mergers in a model of multiproduct‐firm price competition with CES and logit demand, allowing for arbitrary firm and product heterogeneity. We provide conditions under which a merger raises consumer surplus, and establish the dynamic optimal...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 56; no. 3; pp. 233 - 251
Autores principales: Nocke, Volker, Schutz, Nicolas
Formato: Artículo
Publicado: Wiley-Blackwell Fall2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: An Aggregative Games Approach to Merger Analysis in Multiproduct‐Firm Oligopoly.
      aug:
        au:
          Nocke, Volker
          Schutz, Nicolas
        affil: Department of Economics and MaCCI, University of Mannheim, also affiliated with CEPR, Mannheim, Germany
      su:
        Game theory
        Oligopolies
        Economic competition
        Mergers & acquisitions
        Multiproduct firms
        Herfindahl-Hirschman index
        Bargaining power
        Consumers' surplus
      sug:
        subj:
          Game theory
          Oligopolies
          Economic competition
          Mergers & acquisitions
          Multiproduct firms
          Herfindahl-Hirschman index
          Bargaining power
          Consumers' surplus
      ab: Using an aggregative games approach, we analyze horizontal mergers in a model of multiproduct‐firm price competition with CES and logit demand, allowing for arbitrary firm and product heterogeneity. We provide conditions under which a merger raises consumer surplus, and establish the dynamic optimality of a myopic, consumer‐surplus‐based merger approval policy. We also study the aggregate surplus and external effects of a merger. Finally, we show that the market power effect of a merger, defined as the welfare effect in the absence of merger‐specific synergies, can be approximated by the induced, naively computed change in the Herfindahl index.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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