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MERGERS OF PRODUCERS OF COMPLEMENTS: HOW AUTONOMOUS MARKETS CHANGE THE PRICE EFFECTS*

MERGERS OF PRODUCERS OF COMPLEMENTS: HOW AUTONOMOUS MARKETS CHANGE THE PRICE EFFECTS* We analyze the price effects of mergers to monopoly between producers of complementary goods when there exists a fraction of consumers that value only one of the components. We show that customers are more likely to face a price decrease for the composite good under this setting than when such consumers do not exist. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Manchester School Wiley

MERGERS OF PRODUCERS OF COMPLEMENTS: HOW AUTONOMOUS MARKETS CHANGE THE PRICE EFFECTS*

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References (8)

Publisher
Wiley
Copyright
Copyright © 2010 Wiley Subscription Services
ISSN
1463-6786
eISSN
1467-9957
DOI
10.1111/j.1467-9957.2009.02128.x
Publisher site
See Article on Publisher Site

Abstract

We analyze the price effects of mergers to monopoly between producers of complementary goods when there exists a fraction of consumers that value only one of the components. We show that customers are more likely to face a price decrease for the composite good under this setting than when such consumers do not exist.

Journal

The Manchester SchoolWiley

Published: Jan 1, 2010

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