The aim of this paper is to complement the existing literature on horizontal
mergers, by setting a Cournot mixed oligopoly model. Specifically, the merger
paradox is qualified by proving that a merger could be profitable for the merging
firms even if it does not include most market firms. Furthermore, it is
proved that a merger can only be welfare improving if the degree of privatization
of the public firm is low enough.
Mendez, J. (2016). Privatization and mergers in mixed oligopoly models. Estudios De Economía, 34(1), pp. 37–52. Retrieved from https://enfoqueseducacionales.uchile.cl/index.php/EDE/article/view/40303
