The New Empirical Industrial Organization (NEIO) provides techniques for the estimation of parameters of conduct that identify well-defined models of oligopoly behaviour, ranging from perfect competition, or, equivalently, Bertrand competition, the Cournot outcome and collusive cartel. The...

This paper uses a sample of 25 large mergers from 1996 to 2004 to study the effect of mergers on the implied volatilities of equity options. The results indicate a statistically significant increase in volatility beyond the amount predicted if the transaction were effectively nothing more than a...