1. Explain why mergers that do not involve efficiency gains are rarely profitable in Cournot industries.
2. What is the main advantage of assessing the welfare impact of a merger by looking at its ‘external effect'? Explain in words the condition under which this external effect is positive.
3. Taking successive mergers and entry into account, discuss whether and, if yes, how merger analysis has to be reconsidered.
4. Explain the fundamental differences between mergers in Cournot and in Bertrand industries.
5. What is meant by the ‘coordinated effects' of a merger. Discuss.