“Mergers of producers of complements: how autonomous markets change the price effects”, The Manchester School, forthcoming, with Margarida Catalão-Lopes (Universidade Técnica de Lisboa).

Abstract : We analyze the price effects of mergers to monopoly between producers of complementary goods when there exists a fraction of consumers that value only one of the components. We show that customers are more likely to face a price decrease for the composite good under this setting than when such consumers do not exist.

Keywords : mergers, complements, price competition.
JEL Classification: L41