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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- Fall '10
- Perfect Competition, 3rd millennium, 25th century