Endogenous mergers in concentrated markets

摘要: Abstract This paper proposes an approach to modeling endogenous merger formation, employing ideas on coalition formation from cooperative game theory. The model constitutes a generalization of the traditional IO criterion for whether firms have incentives merge. suggests that in concentrated markets, mergers are conducive market structures with large industry profits, and thus points potential conflict between private social incentives. It is shown how may be undertaken order preempt other possible, socially more desirable, mergers. also throws light research joint ventures.