Olczak, Matthew (2010). Unilateral versus coordinated effects:comparing the impact on consumer welfare of alternative merger outcomes. IN: 8th international industrial organization conference. 2010-05-14 - 2010-05-16.
Abstract
The nature of tacitly collusive behaviour often makes coordination unstable, and this may result in periods of breakdown, during which consumers benet from reduced prices. This is allowed for by adding demand uncertainty to the Compte et al. (2002) model of tacit collusion amongst asymmetric rms. Breakdowns occur when a rm cannot exclude the possibility of a deviation by a rival. It is then possible that an outcome with collusive behaviour, subject to long/frequent break downs, can improve consumer welfare compared to an alternative with sustained unilateral conduct. This is illustrated by re-examining the Nestle/Perrier merger analyzed by Compte et al., but now also taking into account the potential for welfare losses arising from unilateral behaviour.
Divisions: | College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship College of Business and Social Sciences > Aston Business School |
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Event Title: | 8th international industrial organization conference |
Event Type: | Other |
Event Dates: | 2010-05-14 - 2010-05-16 |
Uncontrolled Keywords: | tacit collusion,collective dominance,coordinated effects,unilateral effects,merger policy |
Last Modified: | 30 Sep 2024 08:45 |
Date Deposited: | 13 Feb 2013 11:51 |
Full Text Link: |
https://editori ... 10&paper_id=209 |
Related URLs: | PURE Output Type: | Paper |
Published Date: | 2010-10 |
Authors: |
Olczak, Matthew
(
0000-0001-6808-3832)
|