Paper #960

Títol:

Spatial market expansion through mergers

Autors:

Verónica Durán-Carbó, Charles ReVelle i Daniel Serra

Data:

Març 2006

Resum:

In this paper we present a model that studies firm mergers in a spatial setting. A new model is formulated that addresses the issue of finding the number of branches that have to be eliminated by a firm after merging with another one, in order to maximize profits. The model is then applied to an example of bank mergers in the city of Barcelona. Finally, a variant of the formulation that introduces competition is presented together with some conclusions.

Paraules clau:

Mergers, facility location, spatial competition

Codis JEL:

C61, J80

Àrea de Recerca:

Gestió de la Producció i de les Operacions

Descarregar el paper en format PDF (392 Kb)