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Applied Economics Letters Volume 13, 2006 - Issue 2
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Original Articles

Horizontal merger in bilaterally duopolistic industries with differentiated products

Zouhaïer M'Chirgui G.R.E.Q.A.M., Université d’Aix-Marseille, 15/19, Allée Claude Forbin, 13627, Aix-en-Provence, FranceCorrespondence[email protected]
&
Walid Hichri G.R.E.Q.A.M., Université d’Aix-Marseille, 15/19, Allée Claude Forbin, 13627, Aix-en-Provence, France
Pages 93-95 | Published online: 02 Jun 2010
 
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Abstract

The purpose of this paper is to focus on the strategic decision as to whether or not merger is profitable according to the degree of final product differentiation in bilaterally duopolistic industries. We find that, under some conditions on the factor of substitution, a horizontal merger is profitable.

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