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The University of Southampton
EconomicsPart of Economic, Social and Political Science

1001 International Trade and the Incentive for Merger (G. Stewart & M. Chalkley)

Discussion Paper 1001, "International Trade and the Incentive for Merger", by Stewart, G. and Chalkley, M.

This paper examines the profitability of horizontal merger in an open economy with Cournot competition. We find that duopoly is a necessary, but not sufficient, condition for domestic merger to be profitable. A cross-border merger, however, can be profitable from any market structure.

Keynames: merger, international trade, oligopoly

JEL Classification: L4, F2.

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