Work

On Horizontal Mergers in the Presence of Economies of Scale

Year: 2026

Type: article

Abstract: This paper studies the conditions under which a profitable merger can simultaneously increase consumer surplus and total welfare. In Cournot markets with linear demand and concave-quadratic costs, greater economies of scale or more concave costs are associated with larger increases in both consumer surplus and total welfare.

Source: Review of Industrial Organization

DOI: 10.1007/s11151-026-10069-x

Authors: X. Henry Wang, Jingang Zhao

Institutions: University of Missouri, University of Saskatchewan

Language: English

Topic: Merger and Competition Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,190

OpenAlex ID: W7222833016