International Trade and the Incentive for Merger

Geoff Stewart (1) , Martin Chalkley (2)

1 Economics
2 Economic Studies

This paper examines the profitability of horizontal merger in an open economy with Cournot competition. We find that duopoly is a necessary, but not sufficient, condition for domestic merger to be profitable. A cross-border merger, however, can be profitable from any market structure.

Mots clés: Social Sciences & Humanities

Geoff Stewart, Martin Chalkley. International Trade and the Incentive for Merger. Applied Economics, 2010, pp.1. ⟨10.1080/00036840903527171⟩. ⟨hal-00582288⟩