Johnson, Justin Pappas and Rhodes, Andrew (2021) Multiproduct mergers and quality competition. TSE Working Paper, n. 18-967, Toulouse

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Abstract

We investigate mergers in markets where quality dierences between products are central and rms may reposition their product lines by adding or removing products of dierent qualities following a merger. Such mergers are ma-
terially dierent from those studied in the existing literature. Mergers without synergies may exhibit a product-mix eect which raises consumer surplus, but only when the pre-merger industry structure satises certain observable features. Post-merger synergies may lower consumer surplus. The level of, and changes in, the Herndahl-Hirschman Index may give a misleading assessment of how a merger aects consumers. A merger may benet some outsiders but harm others.

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• Multiproduct mergers and quality competition. (deposited 19 Nov 2018 11:12) [Currently Displayed]
  • Multiproduct mergers and quality competition. (deposited 28 Sep 2021 11:23)