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Andreea Cosnita
''Horizontal mergers in the circular city: a note''
( 2005, Vol. 12 No.7 )
Two-firm horizontal Cournot mergers give rise to multi-plant firms in spatial markets. We study location equilibria on the circle for competition between a two-store merged entity and one then two single-store competitors. Several results turn up. First of all, we get equilibrium location patterns that could not have been obtained on the segment. Secondly, we investigate the profitability of such mergers and find that they turn out to be unprofitable much earlier.
Keywords: circular city
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
D4 - Market Structure and Pricing: General
Manuscript Received : Nov 25 2004 Manuscript Accepted : Apr 19 2005

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