Profitable horizontal mergers without cost advantages: The role of internal organization, information, and market structure

Arbeitspapier

Merged firms are typically rather complex organizations. Accordingly, me rger has a more profound effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal mergers profitable and welfare – improving even if costs are linear. The driving force behind these results, which help to reconcile theory with various empirical findings, is the assumption that information about output decisions flows more freely within a merged firm.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WZB Discussion Paper ; No. FS IV 01-05

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Oligopoly and Other Imperfect Markets ; Firm Organization and Market Structure ; Monopolization; Horizontal Anticompetitive Practices
• Subject: Merger ; internal organizational structure ; information ; timing ; market structure ; Fusion ; Organisationsstruktur ; Informationsfluss ; Marktstruktur

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Huck, Steffen ; Konrad, Kai A. ; Müller, Wieland
• Event: Veröffentlichung
• (who): Wissenschaftszentrum Berlin für Sozialforschung (WZB)
• (where): Berlin
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/52608
• Last update: 10.03.2025, 11:42 AM CET