Stable market structures from merger activities in mixed oligopoly with asymmetric costs |
| |
Authors: | Yoshio Kamijo Yasuhiko Nakamura |
| |
Institution: | (1) Faculty of Political Science and Economics, Waseda University, 1-6-1, Nishiwaseda, Shunjuku-ku, Tokyo 169-8050, Japan;(2) Graduate School of Economics, Waseda University, 1-6-1, Nishiwaseda, Shunjuku-ku, Tokyo 169-8050, Japan |
| |
Abstract: | This paper examines endogenous merger formations in a mixed oligopoly. Applying the core as a solution concept, we analyze
which market structure(s) remain(s) stable when three firms—two symmetric private firms and one inefficient public firm—are
allowed to merge with each other in a mixed Cournot industry. We show that according to the value of the marginal cost of
the public firm, there always exists a pair of share ratios of the owners of both the (pre-merged) public firm and the (pre-merged)
private firm such that the market structure with the merger between the public firm and one private firm belongs to the core.
When the initial market structure is a mixed triopoly, it can only be blocked when one public firm and one private firm merge.
Furthermore, we conduct a similar analysis in a general mixed oligopoly with one public firm and n private firms.
|
| |
Keywords: | Mixed oligopoly Merger Asymmetric cost Core of market structures |
本文献已被 SpringerLink 等数据库收录! |
|