LeadershipMerger - 143641 263376 419561 This spreadsheet...

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Merger of Firms that become Stackelberg Leaders Minimum Number of Firms 5 Increment in Number of Firms 5 Minimum Number of Leaders 2 Increment in Number of Leaders 2 5 10 15 20 25 30 35 40 45 50 2 80 505 1380 2705 4480 6705 9380 12505 16080 20105 4 100 865 2880 6145 10660 16425 23440 31705 41220 51985 6 841 3876 9361 17296 27681 40516 55801 73536 93721 8 529 3984 11489 23044 38649 58304 82009 109764 141569 10 3204 12049 26944 47889 74884 107929 147024 192169 12 1920 10945 28420 54345 88720 131545 182820 242545 14 900 8465 27280 57345 98660 151225 215040 290105 16 5281 23716 56601 103936 165721 241956 332641 18 2449 18304 52209 104164 174169 262224 368329 20 12004 44649 99344 176089 274884 395729 22 6160 34785 89860 171385 279360 413785 24 2500 23865 76480 160345 275460 421825 26 13521 60356
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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.

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