An Aggregative Games Approach to Merger Analysis in Multiproduct-Firm Oligopoly

• Published in: NBER Working Paper Series p. 24578
• Main Authors: Nocke, Volker, Schutz, Nicolas
• Format: Paper
• Language: English
• Published: Cambridge National Bureau of Economic Research, Inc 01.05.2018
• Subjects: Acquisitions & mergers; Economic models; Economic policy; Game theory; Welfare; United States > US

Working Paper No. 24578 Using an aggregative games approach, we analyze horizontal mergers in a model of multiproduct-firm price competition with nested CES or nested logit demands. We show that the Herfindahl index provides an adequate measure of the welfare distortions introduced by market power,...