Manufacturer Mergers and Product Variety in Vertically Related Markets
| Autor: | Chrysovalantou Milliou, Joel Sandonís |
|---|---|
| Přispěvatelé: | Universidad de Alicante. Departamento de Fundamentos del Análisis Económico, Microeconomía Aplicada (GIMA) |
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
Horizontal mergers
Fundamentos del Análisis Económico media_common.quotation_subject Product variety 05 social sciences Final product Variety (cybernetics) Incentive 0502 economics and business Industrial relations European integration Business Product (category theory) 050207 economics Vertical relations Welfare Industrial organization 050205 econometrics media_common |
| Zdroj: | RUA. Repositorio Institucional de la Universidad de Alicante Universidad de Alicante (UA) |
| Popis: | We study the incentives of final product manufacturers to introduce new products into the market and the impact of a manufacturer merger on them. We show that when manufacturers distribute their products through multi-product retailers, a manufacturer merger, although it leads to an increase in the wholesale prices, it can enhance product variety. The merger induced product variety enhancement though arises only when vertical relations are present: when manufacturers sell directly their products to consumers, a merger never results in more product variety. Still, both with or without vertical relations, a manufacturer merger hurts consumers and decreases welfare. The first author gratefully acknowledges financial support from the Research Support Program - Action 1 of the Athens University of Economics and Business. The second author gratefully acknowledges financial support from Generalitat Valenciana under grant PROMETEO/2013/037 and from MINECO/FEDER under project ECO2012-34928. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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