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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Friebel, Guido / Mendola, Mariapia / Requate, Till / Tsui, Kevin / Wichardt, Philipp / Zulehner, Christine

4 Issues per year

IMPACT FACTOR 2014: 0.336
5-year IMPACT FACTOR: 0.848

SCImago Journal Rank (SJR) 2014: 0.633
Source Normalized Impact per Paper (SNIP) 2014: 0.606
Impact per Publication (IPP) 2014: 0.640


Spatial Competition and Merger

Richard S Higgins1 / Paul A Johnson2 / John T Sullivan3




Citation Information: Topics in Economic Analysis & Policy. Volume 4, Issue 1, ISSN (Online) 1538-0653, DOI: 10.2202/1538-0653.1223, March 2004

Publication History

Published Online:


We consider a computational equilibrium model of spatially differentiated Bertrand competition and apply it to merger analysis. Two pricing paradigms are studied: one where firms cannot price discriminate among customers and one where firms can. The model encompasses many details that make it highly realistic. A detailed example illustrates several insights into merger analysis that are not readily apparent through traditional means. The most important of these is that merger of substitute products under Bertrand price competition need not result in a price increase.

Keywords: merger; demand estimation

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