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Mergers in Open Economies
Author(s) -
Falvey Rod
Publication year - 1998
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/1467-9701.00181
Subject(s) - citation , economics , library science , computer science
This paper explores the problems of merger policy in open economies, using a simple model of the market for a homogeneous product in which firms are Cournot competitors and differ in their unit costs. Mergers can take place within or across national boundaries, and may raise or lower global welfare. Their approval by national competition authorities will depend on their separate national welfare effects, however, which can lead to biases against socially desirable international mergers. Outline