Bargaining , mergers , and technology choice in bilaterally oligopolistic industries

  title={Bargaining , mergers , and technology choice in bilaterally oligopolistic industries},
  author={Christian Wey},
This paper provides a conceptual framework of multilateral bargaining in a bilaterally oligopolistic industry to analyze the motivations for horizontal mergers, technology choice, and their welfare implications. We first analyze the implication of market structure for the distribution of industry profits. We find that retailer mergers are more likely (less likely) if suppliers have increasing (decreasing) unit costs, while supplier mergers are more likely (less likely) if goods are substitutes… CONTINUE READING
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