Mergers of producers of complements: how autonomous markets change the price effects
Brito, D., M. Catalão-Lopes
,
(2010)
,
"Mergers of producers of complements: how autonomous markets change the price effects"
,
Manchester School
,
78
,
60-75
.
CEFAGE Author(s)
Duarte Miguel Machado Carneiro de Brito
Abstract
We analyze the price effects of mergers to monopoly between producers of complementary goods when there exists a fraction of consumers that value only one of the components. We show that customers are more likely to face a price decrease for the composite good under this setting than when such consumers do not exist.