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Spatial market expansion through mergers
Durán-Carbó, Verónica; ReVelle, Charles; Serra, Daniel
Universitat Pompeu Fabra. Departament d'Economia i Empresa
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.
Operations Management
facility location
spatial competition
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