Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
884531 | Journal of Economic Behavior & Organization | 2008 | 11 Pages |
Abstract
This paper is concerned with the study of durability as an aspect of competition and market structure that contributes to determining the incentives for mergers. We find that relative to the incentives in industries that produce non-durable goods the durability of the good produced by an industry enhances the incentive for mergers in the presence of intertemporal consistency problems. Further, the analysis indicates that in durable good markets a good antitrust policy should combine a restriction to rent solely with a prudent merger policy.
Keywords
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Amagoia Sagasta, Ana I. Saracho,