Work

On Cross-Border Mergers and Product Differentiation

Year: 2014

Type: article

Abstract: We construct a general equilibrium model of an oligopolistic industry that allows us to capture the role of product differentiation in the incentives for and implications of cross-border mergers. We show that a rise in the degree of product differentiation will compress the extensive margins of trade and, at the same time, reduce the gains from cross-border mergers. We also demonstrate how cross-border mergers can mitigate the effect of product differentiation on the extensive margins of trade.

Source: The B E Journal of Economic Analysis & Policy

DOI: 10.1515/bejeap-2014-0077

Authors: Hamid Beladi, Avik Chakrabarti, Sugata Marjit

Institutions: The University of Texas at San Antonio, University of Wisconsin–Milwaukee, Centre for Studies in Social Sciences Calcutta

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

Funders: Jadavpur University, Indian Statistical Institute

OpenAlex ID: W2036768596

FWCI: 2.473

Cites: 24

Cited by: 11

Related to: 10