Stabsseminar ved Lars Sørgard

Prof. Lars Sørgard, NHH, holder stabsseminar ved Institutt for foretaksøkonomi fredag 26. januar.

24.01.2001 - Elin F. Styve

Tema er Merger in an Advertising-Intensive Industry

Tid og sted:
Fredag 26. januar, kl. 1415-1530 - i aud. E

Abstract
The purpose of this article is to examine the profitability and welfare effects of a merger in an industry with endogenous advertising. It is shown that a merger reduces the total advertising outlay in an industry with collusive price setting, while the opposite may be true with non-collusive price setting. In contrast to a corresponding model without advertising, a two-firm merger can be profitable. This is true if the number of firms is sufficiently small or own sale's response to own advertising is sufficiently large. We also show that while profitable mergers are detrimental to welfare when price competition prevails, welfare improving mergers can be unprofitable in an industry with soft price competition.

Paper kan hentes fra instituttets hjemmeside på Internett: www.nhh.no/for/seminars/2001-spring/260101.pdf.