Adobe Systems
Kvantifikace dopadů mergers
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1

Oligopoly
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Vězňovo dilema
B
talk
silent
A
talk
A = 2, B = 2
A = 0, B = 5
silent
A = 5, B = 0
A = 1, B = 1
Coca-cola
advertise
not-advertise
Pepsi
advertise
P = 3, C = 3
P = 13, C = -2
not-advertise
P = -2, C = 13
P = 8, C = 8

Cournout oligopoly
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Cournout oligopoly
•Homogenous good
•Competing in quantities
•Preferences -> biggest profit
•Evaluating Cournout:
1.Estimate residual demand
2.Estimate marginal revenue given the other firm`s quantity
3.Firm 1: marginal revenue = marginal costs
4.Firm 2: marginal revenue = marginal costs
5.Solve
6.
5

Cournout oligopoly: merger control
6


Cournout oligopoly: pre-merger
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Cournout oligopoly: post-merger
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8

Cournout oligopoly: reaction functions
9


Hypothetical merger: results
10


I hate maths, what should I do?
11


Case study
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