caa a22 4500 469042893 CHVBK 20180323132816.0 cr unu---uuuuu 170328e19920601xx s 000 0 eng 10.1007/BF00158140 doi (NATIONALLICENCE)springer-10.1007/BF00158140 Boyer Kenneth Michigan State University, 48824, East Lansing, MI, U.S.A. aut Mergers that harm competitors [Elektronische Daten] [Kenneth Boyer] Standard models of oligopolistic interdependence predict that firms remaining outside of a horizontal merger will benefit from it. Why, then, do nonparticipating firms feel threatened by mergers? This paper shows that under reasonable conditions a non-participating firm is harmed by a merger. The analysis is based on a spatial equilibrium with suppliers and demanders located at fixed points. Mergers harm non-participating firms as a result of the decrease in the level of marginal costs of the merged firm attributable to decreased output in markets where competition is eliminated. This lowered marginal cost makes the merged firm a more formidable competitor in markets in which outsiders participate. This effect is in almost all cases sufficient to make outsiders worse off after a merger. Simulations on a sample of spatial equilibria show that the harm to outsiders is a reliable index of the harm that the merger causes to social welfare. Kluwer Academic Publishers, 1992 Mergers nationallicence spatial competition nationallicence antitrust nationallicence anticompetitive combinations nationallicence Review of Industrial Organization Kluwer Academic Publishers 7/2(1992-06-01), 191-202 0889-938X 7:2<191 1992 7 11151 https://doi.org/10.1007/BF00158140 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00158140 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Boyer Kenneth Michigan State University, 48824, East Lansing, MI, U.S.A aut NATIONALLICENCE 773 0- Review of Industrial Organization Kluwer Academic Publishers 7/2(1992-06-01), 191-202 0889-938X 7:2<191 1992 7 11151 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer