Mergers under endogenous minimum quality standard: a note

A Economics Bulletin

Volume 30, Issue 4

Mergers under endogenous minimum quality standard: a note

Berardino Cesi

University of Bristol

Abstract

We introduce merging strategies and endogenous MQS, borrowed from Ecchia and Lambertini (1997), in Scarpa
(1998). MQS induces the low-quality firm to exit the market and leads to a monopoly arising from the bilateral merger
of the high-quality firms

I would like to thank Alberto Iozzi, Sara Biancini, Dimitri Paolini and the anonymous referee for their helpful comments.

Citation: Berardino Cesi, (2010) ''Mergers under endogenous minimum quality standard: a note'', Economics Bulletin, Vol. 30 no.4 pp.
3260-3266.

Submitted: Sep 23 2010. Published: December 05, 2010.

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