Mergers Under Endogenous Minimum Quality Standard: a note

B. Cesi, Economics Bulletin, Vol. 30, n. 4 (2010)

Abstract: We introduce merging strategies and endogenous MQS, borrowed from Ecchia and Lambertini (1997), in Scarpa (1998). MQS induces the low-quality firm to exit the market and leads to a monopoly arising from the bilateral merger of the high-quality firms

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