The Game Analysis Of Market Uncertainty On The Impact Of Corporate Vertical Mergers

In the development of modern economic, corporate merger is not only an important channel for business growth, but also an important strategic instrument to adjust the industrial structure,enhance national competitiveness and protect the social welfare. corporate merger is divided into level merger, vertical merger, mixed merger. level merger is easy to damage the competition and hence form a high degree of monopoly, so many countries pay close attention and limit the occurrence of such mergers. vertical merger means that advantage Enterprise purchase the Enterprise whose products are closely related to the production order in accordance with production and management and expand the production scale, therefore achieving scale advantage and s economic advantage.In this paper, We apply cournot game model to analysis the impact to the behavior of vertical merger and final product prices in oligopoly market caused by uncertainty of input price which is caused by the uncertainty of market. This article is divided into six parts.The first part is the background of the introduction of this article, the study aimed to examine the significance of research methods and possible points of innovation. Starting from the end of the 19th century, the world experienced a total of five waves of corporate mergers, significantly changed the pattern of the world economy, Because the restrictions of anti-trust on the level mergers in the second merger climax occurred during 1920,there are mainly a large number of vertical mergers.The second part mainly introduce the theories of enterprise merger, particularly the research situation home and abroad and uncertainty of vertical merger.Vertical merger theory focuses on two aspects: First vertical merger can eliminate the twist of price resulted by double increases;second,vertical mergers might cause market delineation.Uncertainty can be divided into the market uncertainty, technological uncertainty and behavioral uncertainty. the uncertainty of the research refers to the input market uncertainty in process of enterprise vertical mergers, performing as the uncertainty of input price.The third part mainly introduce the vertical mergers game model. based on the existence of monopoly power and the development process of successive oligopoly. we introduce two representative game models in detail: Salinger model and the OSS model.In the fourth part of the paper,we apply the Cournot game to analysis the behavior of enterprise vertical merger. And we study the impact of the uncertainty of the input price to vertical merger and social welfare Under the oligopoly market structure.in the case that Investment is large, the uncertainty of the input price will increase the number of merger enterprises; reducing the final product prices (that is, improve the social welfare); contrary, if the investment cost is very small, increased uncertainty will reduce the number of merger enterprises, improve the final product price (that is, to lower social welfare).In The fifth part, we summarize the results of this paper and weaknesses, and look forward to vertical mergers business prospects for the development of related theories. There will be further research on The delineation of the vertical effects of mergers and the market problem.