R. Fauli-Oller
The Manchester School – 70.1 (2002) 77-87

Keywords: asymmetries, Cournot, welfare, profits, mergers

Abstract: Using only information on the degree of concavity of demand and observable structural variables such as the market shares of firms, a necessary and sufficient condition for a merger to increase welfare is derived. On the profitability side, we obtain that when market size decreases merger profitability increases.