Borek, Thomas; Buehler, Stefan; Schmutzler, Armin - Institut für Volkswirtschaftslehre, … - 2002
We provide a framework for analyzing bilateral mergers when there is two-sided asymmetric information about firms’ types. We show that there is always a "no-merger" equilibrium where firms do not consent to a merger, irrespective of their type. There may also be a "cut-off" equilibrium if the...