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Unformatted text preview: 143641 263376 419561 This spreadsheet checks the condition that must hold in order that a further two-firm merger is profitable given that there are already L merged firms that are market leaders in a market containing N firms in total. The leader firms are Cournot competitors against each other as are the follower firms, but the followers take the leader group aggregate output as given. You can manipulate the numbers of leaders and followers by changing the cells outlined in red. Original Number of Firms N Original Number of Leaders L...
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This note was uploaded on 12/27/2011 for the course ECON 468 taught by Professor Jean-francoishoude during the Fall '10 term at Wisconsin Milwaukee.
- Fall '10
- Perfect Competition