tailieunhanh - Quantitative Techniques for Competition and Antitrust Analysis by Peter Davis and Eliana Garcés_12

Tham khảo tài liệu 'quantitative techniques for competition and antitrust analysis by peter davis and eliana garcés_12', khoa học xã hội, kinh tế chính trị phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 408 8. Merger Simulation p Ị púcePost-m priceCartel PĨ R1 P Static Nash equilibrium prices where each firm is doing the best theycan given the price charged by the other s NE jRi 77NE Ci 7ne ne c pNE l Figure . A two-to-one merger in a differentiated product pricing game. the demand model. For example the linear model could involyy D2 p a2 b21P1 b22p22 so that dD2 p dP1 b22 anianalogouslynamrGe m bu. Note that if the two products are substitutes and dDị p dpj 0 then the equilibrium price for a firm maximizing joint profits will be igher absentcountervaiSing efficiencies. This is because the monopolirt unliSethesingle-product firmmteo duopoly gains the profits from the cssiomers whoswiacSiothe cgmpeling groducr after a price increase. We illustratedtnis aci Si the twa-ehotuct gameineSagter 2. The effect of a merger in a two-teiioc mergnaina mcrpei wtgi twrSiSferentirled single-product firms is illustrateO is figure . iB íii í eBeiS Midpc ce í gtísii with differentiated products is asi x eiia t ei rpreer te aaeottategiccemplemeets the reaction functions are increasiggin Iliiiiissc oafiieother egsd1TSointersection of the two pricing functions givesthgoptimal priae for ilg iir rioiiol di o t l .T f i-the merger the firm will price diSfereetìyrmeeiiintesnattzeslhe tSoil gt iinaiso the price of a product on the other produces wrtl murt io hinhaepricss for both products. In this case she gost-mercerpstceisalse thet which weuid Ci associated with a perfect cartel sgriag . Multiproduct Firms Let us now consider the case ofe iii-rnin-ockicirig sehrTal jrroductspre-merger. If a market is initially comgosed of firms groducing several groducts this means that firms grofit maximization alreadyinvolvesogtimization aa oss many groducts. The pricing equation of given goods Lii I also gggyndonihndcmanSaedeasiesoometerr of other goods which are producadiy the sama msrgor willraruitis acOoege in the pricing equation of certainaoodras .