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Merger and collusion in contests
[Kollusion und Fusion in Contests]

Author

Listed:
  • Huck, Steffen
  • Konrad, Kai A.
  • Müller, Wieland
Abstract
Competition in some product markets takes the form of a contest. If some firms cooperate in such markets, they must decide how to allocate effort on each of their products and whether to reduce the number of their products in the competition. We show how this decision depends on the convexity properties of the contest success function, and we characterize conditions under which cooperation is profitable.

Suggested Citation

  • Huck, Steffen & Konrad, Kai A. & Müller, Wieland, 2001. "Merger and collusion in contests [Kollusion und Fusion in Contests]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-04, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbmpg:fsiv0104
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Derek Clark & Øystein Foros & Jan Sand, 2011. "Foreclosure in contests," Public Choice, Springer, vol. 148(1), pages 215-232, July.
    2. James W. Boudreau & Shane Sanders & Nicholas Shunda, 2019. "The role of noise in alliance formation and collusion in conflicts," Public Choice, Springer, vol. 179(3), pages 249-266, June.
    3. Akio Kawasaki & Takao Ohkawa & Makoto Okamura, 2019. "Inter-group competition through joint marketing efforts and intra-group Cournot competition," Journal of Economics, Springer, vol. 128(3), pages 203-224, December.
    4. Priks, Mikael, 2011. "Firm competition and incentive pay: Rent seeking at work," Economics Letters, Elsevier, vol. 113(2), pages 154-156.
    5. Konrad, Kai A., 2007. "Strategy in contests: an introduction [Strategie in Turnieren – eine Einführung]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-01, WZB Berlin Social Science Center.
    6. Martin Grossmann & Helmut Dietl, 2012. "Asymmetric contests with liquidity constraints," Public Choice, Springer, vol. 150(3), pages 691-713, March.
    7. Wang Zhewei, 2010. "The Optimal Accuracy Level in Asymmetric Contests," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-18, April.
    8. Krakel, Matthias & Sliwka, Dirk, 2006. "Strategic delegation and mergers in oligopolistic contests," Journal of Economics and Business, Elsevier, vol. 58(2), pages 119-136.
    9. Bo Chen & Shanlin Jin, 2023. "Elimination contests with collusive team players," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(1), pages 61-89, February.
    10. Boudreau, James W. & Shunda, Nicholas, 2015. "Tacit Collusion in Repeated Contests with Noise," MPRA Paper 65671, University Library of Munich, Germany.

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    More about this item

    Keywords

    Contests; merger; collusion; promotional competition; Kampf um Marktanteile; Kollusion; Fusion;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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