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Your search keyword '"consumer surplus"' showing total 45 results
Start Over Descriptor "consumer surplus" Journal journal of economics
45 results on '"consumer surplus"'

2. Can cross-holdings benefit consumers?

Author

Cheng, Hao, Wu, Xiaoting, and Zeng, Chenhang

Subjects
CONSUMERS, DISTRIBUTION costs, SUBSIDIES, CONSUMERS' surplus
Abstract

Common wisdom suggests that cross-holdings can lead to significant output contraction, and thus hurt consumers. On the contrary, we demonstrate that cross-holdings may increase industry output and benefit consumers in an asymmetric Cournot oligopoly with the presence of a welfare-maximizing tax/subsidy policy. The government will strategically use the tax/subsidy policy to regulate the market outcomes in anticipation of the adverse effect of cross-holdings, which could raise industry output and benefit consumers in certain situations depending on the cost distributions and cross-holding structures. [ABSTRACT FROM AUTHOR]

Published
2024
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3. Upstream horizontal mergers involving a vertically integrated firm.

Author

Pinopoulos, Ioannis N.

Subjects
CONSUMERS' surplus, PRICE cutting
Abstract

We study upstream horizontal mergers when one of the merging parties is vertically integrated. Under observable contracting in the pre-merger case, we show that such type of mergers always harm consumers. However, under unobservable contracting in the pre-merger case, the input price may decrease and consumer surplus may increase as a result of the merger even in the absence of exogenous cost-synergies between merging firms. A necessary condition for this finding is that the unintegrated downstream firm is more cost-efficient than the downstream division of the integrated firm. [ABSTRACT FROM AUTHOR]

Published
2020
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