Merger and collusion in contests

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. -- In vielen Gütermärkten erfolgt der Wettbewerb zwischen Unternehmen nicht primär über Preise und Mengen, sondern über Verkaufsanstrengungen. Ein Beispiel hierfür ist der Kampf um Marktanteile und Kunden in Märkten mit hohen Werbeaufwendungen. Wenn Unternehmen in solchen Märkten kooperieren, müssen sie entscheiden, ob sie ihre gesamte Produktpalette beibehalten und ihre Verkaufsanstrengungen auf alle Produkte verteilen („Kollusion“) oder ob sie die Anzahl ihrer Produkte reduzieren („Fusion“). Wir zeigen, daß diese Entscheidung von den Konvexitätseigenschaften der Funktion abhängt, die den Markterfolg eines Produkts in Abhängigkeit von den Verkaufsanstrengungen für dieses Produkt bzw. für die Konkurrenzprodukte bestimmt, und untersuchen die Bedingungen, in denen Kooperation in Form von „Kollusion“ oder „Fusion“ für die kooperierenden Unternehmen profitabel ist.Contests,merger,collusion,promotional competition,Kampf um Marktanteile,Kollusion,Fusion

Profitable horizontal mergers without cost advantages: The role of internal organization, information, and market structure

Merged firms are typically rather complex organizations. Accordingly, me rger has a more profound effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal mergers profitable and welfare – improving even if costs are linear. The driving force behind these results, which help to reconcile theory with various empirical findings, is the assumption that information about output decisions flows more freely within a merged firm. -- Unternehmensfusionen führen häufig zu komplexen Organisationen. Fusionen haben deshalb andere und tiefgründige Wirkungen auf die Marktstruktur. Sie reduzieren nicht einfach die Zahl der Wettbewerber in einem Markt, sondern durch Fusionen entstehen Wettbewerber, die sich wegen ihrer komplexen Organisationsstruktur anders verhalten als jedes der einzelnen Unternehmen vor der Fusion. Wir zeigen in dieser Arbeit, dass horizontale Fusion von Unternehmen aus diesen Gründen profitabel für die fusionierenden Unternehmen und wohlfahrtserhöhend wirken kann, selbst dann, wenn es durch die Fusion keinerlei Kostensynergien gibt. Der Schlüssel für dieses Ergebnis, das eine Theorie für eine Reihe von empirischen Befunden liefert, ist der verbesserte Informationsfluss zwischen Unternehmensteilen des durch die Fusion entstehenden Konzerns im Vergleich zum Informationsfluss zwischen unabhängigen Unternehmen.Merger,internal organizational structure,information,timing,market structure,Fusion,Organisationsstruktur,Informationsfluss,Marktstruktur

Profitable Horizontal Mergers without Cost Advantages: The Role of Internal Organization, Information, and Market Structure

Merged firms are typically rather complex organizations. Accordingly, merger has a more profound effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal mergers profitable and welfare-improving even if costs are linear. The driving force behind these results, which help to reconcile theory with various empirical findings, is the assumption that information about output decisions flows more freely within a merged firm.Merger, internal organizational structure, information, timing, market structure

Merger in Contests

Competition in some markets is a contest. This paper studies the merger incentives in such markets. Merger can be profitable. The profitability depends on the post-merger contest st ructure, the discriminatory power of the contest and on the number of contestantsContests, merger

Reproduction volume of Baltic cod in the Bornholm Basin estimated from single point measurements

Estimates of the reproduetion volume of Baltic eod defined as the. total volume of water with salinity above 11 psu, oxygen coneentration above 2 mIlI and temperature above 1.5 °c are presented for the Bornholm Basin based on quasi-synoptie hydrographie surveys. The primary data set consisted of hydrographie observations recorded during 14 eruises in the period from 1991 to 1996 eovering a regular grid of 36 stations with a spacing of appr. 10 nm. This data set was supplemented by including two additional surveys from 1989 with 21 stations. A statistical method the objective analysis was applied to mup the horizontal distribution of the thickness of the spawning layer. Subsequently, the reproduetion volume was ealculated by basiri wide integration. Highly significant eorrelations (r ~ 0.89, p < 0.001) betwcen single point observations of the thickness of the spawning layer and the overall reproduetion volume in the Bornholm Basin was found for 4 stations loeated in the eentral part of the surveyed urea. Linear regression models for single stations and the basin wide reproduction volume were established representing different hydrographie scenarios from stagnation to inflow periods. The results are discussed with respect to a backward extension of the time series using historical single point observations

Development of Baltic cod eggs at different levels of temperature and oxygen content

The influence of ambient temperature (2-7°C) and oxygen level (1.0-8.3 ml· l- 1) on the development of Baltic cod eggs was investigated in laboratory experiments. The incubation period, i.e. the time from fertilization to 50% hatching, decreased from 27.5 days at 2°C to 13.0 days at 7°C. Reduced oxygen levels did not significantly affect the time of hatching. Throughout the incubation period highest mortality rates were found during gastrulation and immediately prior to hatching at all tested oxygen levels. Egg survival decreased from around 30% at an oxygen level of 8 ml· 1- 1 to less than 10% at 2 ml· 1- 1 oxygen content. At oxygen concentrations below 2 ml 0 2 • l- 1 the development ceased at a very early stage. Field observations revealed that in the past years Baltic cod eggs were most abundant below the halocline, depth with unfavourable oxygen condition. Besides the effect on egg survival, low environmental oxygen may also affect the initial viability of larvae and consequently their ability to approach the feeding areas close to the sea surface. Thus, the effective reproduction volume of water for cod in the central Baltic may have been smaller than expected and it is suggested that oxygen depletion was the limiting factor determining the reproductive success of cod in this area during the last decade