haku: @indexterm Delegation / yhteensä: 71
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| Tekijä: | Ziss, S. |
| Otsikko: | Horizontal mergers and delegation |
| Lehti: | International Journal of Industrial Organization
2001 : MAR, VOL. 19:3-4, p. 471-492 |
| Asiasana: | OLIGOPOLY MERGERS DELEGATION |
| Kieli: | eng |
| Tiivistelmä: | This paper shows that the profitability of merger in oligopoly is significantly enhanced if firms delegate the output decision to an agent and then motivate the latter using strategic rent shifting contracts. Two consequences of increased profitability are that the minimum market share that the merging parties require in order to merge profitably without efficiency gains, as well as the maximum market share that the merging parties can possess in order to guarantee that a profitable merger is welfare enhancing, are reduced. A third result is that delegation cannot reduce the set of endogenous mergers. A final contribution of this paper is to show that the intensity of incentive competition depends both on firm size and market structure. The paper provides a substantial list of references on this subject. |
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