Abstract
AbstractThis paper shows that a horizontal merger between two stores (or firms) that are relatively close can enhance efficiency in a model of spatial competition (or spatial product differentiation), if the spacing between them (or between their products) is relatively small compared to the spacing between other stores (or firms) in the market. The basic model assumes that consumers with completely inelastic demand are spread along an infinite line that has infinitely many stores (or firms), but cases with different assumptions are also considered.
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Schedule a callMore From: Papers in regional science : the journal of the Regional Science Association International
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