Arbeitspapier
Merger profitability in industries with brand portfolios and loyal customers
We study the equilibrium effects of mergers between firms with brand portfolios and brand loyal customers for pricing and profitability. We find that the merger paradox (Salant, Switzer and Reynolds 1983) is absent in these markets. The acquisition of brand portfolios can be profit enhancing for the merging firms and payoff neutral for the firms not involved in the merger. This may explain the emergence of brand conglomerates such as Richemont, PPR or LVMH.
- Language
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Englisch
- Bibliographic citation
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Series: WZB Discussion Paper ; No. SP II 2010-08
- Classification
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Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Firm Organization and Market Structure
Marketing
- Subject
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Brand portfolios
merger profitability
customer loyalty
- Event
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Geistige Schöpfung
- (who)
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Konrad, Kai A.
- Event
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Veröffentlichung
- (who)
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Wissenschaftszentrum Berlin für Sozialforschung (WZB)
- (where)
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Berlin
- (when)
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2010
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Konrad, Kai A.
- Wissenschaftszentrum Berlin für Sozialforschung (WZB)
Time of origin
- 2010
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Kapitaleinkommensteuern und beschleunigte Abschreibungen bei Unsicherheit
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Merger in contests
Merger in Contests
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Merger profitability in industries with brand portfolios and loyal customers
A note on depreciation allowances, taxation and risk-taking
Capital formation, risk taking, and taxation
Intergenerationelle Gerechtigkeit bei bestandsabhängigen Extraktionskosten
Kapitaleinkommensteuern und beschleunigte Abschreibungen bei Unsicherheit
Targeted Campaign Competition, Loyal Voters, and Supermajorities
Merger in contests