Takeover Waves
Horizontal takeovers often occur in waves. A sequence of takeovers is obtained in a Cournot setting with cost asymmetries. They are motivated by two different reasons: (1) a low realization of demand increases the profitability of takeovers; (2) takeovers raise the profitability of future takeovers. A possible explanation of merger races is also obtained by showing that firms buying in the first place pay a lower price for their targets. Copyright (c) 2000 Massachusetts Institute of Technology.
Year of publication: |
2000
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Authors: | Fauli-Oller, Ramon |
Published in: |
Journal of Economics & Management Strategy. - Wiley Blackwell. - Vol. 9.2000, 2, p. 189-210
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Publisher: |
Wiley Blackwell |
Saved in:
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