Competition in non-linear pricing, market concentration and mergers

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 117
Issue: 2
Pages: 414-417

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze a model of competition in non-linear pricing under complete information. Among the equilibria of the game, we focus on the truthful equilibrium and the equilibrium that is Pareto dominant for the firms. These coincide when there are only two firms, but differ with three or more firms. In truthful equilibria, more highly concentrated markets are always less competitive. In Pareto-dominant equilibria, by contrast, higher market concentration may intensify competition. As a result, buyers may benefit from a merger even in the absence of efficiency gains.

Technical Details

RePEc Handle
repec:eee:ecolet:v:117:y:2012:i:2:p:414-417
Journal Field
General
Author Count
2
Added to Database
2026-01-25