1st Edition

Firm Diversification, Mutual Forbearance Behavior and Price-Cost Margins

By Allyn D. Strickland Copyright 1984
    174 Pages
    by Routledge

    174 Pages
    by Routledge

    Concern over conglomerate mergers increased dramatically in the latter part of the twentieth century. An acceleration in conglomerate merger activity rekindled firms’ takeover fears and swamped trustbusters, and attention focused on the political and economic issues surrounding conglomerate mergers. Of particular importance is the possibility that conglomerate mergers may increase aggregate concentration and eventually create a ‘zaibatsu’ economy. This book, first published in 1984, addresses the issue by examining the mutual forbearance hypothesis. More specifically, do multi-market contacts among diversified firms affect market competition?

    1. Introduction  2. Multi-Market Contacts, Firm Interdependence and Industrial Profitability  Appendix A. A Simple Model of Firm Interdependence  3. The Sample  Appendix B. Sample Firms  4. Horizontal Interdependence and Industry Price-Cost Margins  Appendix C. Data Sources  5. Vertical Interdependence and Industry Price-Cost Margins  6. Horizontal Interdependence, Vertical Interdependence and Industry Price-Cost Margins  7. Conclusions

    Biography

    Allyn D. Strickland