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Unilateral effects of mergers with general linear demand
Authors:Jerry Hausman  Serge Moresi
Institution:
  • a Department of Economics, MIT, 50 Memorial Drive, Cambridge, MA 02142, USA
  • b Charles River Associates, 1201 F Street NW, Suite 700, Washington, DC 20004, USA
  • c Greylock McKinnon Associates, One Memorial Drive, Suite 1410, Cambridge, MA 02142, USA
  • Abstract:We derive the formula for the unilateral price effects of mergers of two products with linear demand in the general asymmetric situation. The formula uses the same information required to calculate upward pricing pressure in the 2010 Horizontal Merger Guidelines.
    Keywords:L41  L13  D43
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