Showing 1 - 6 of 6
Investment liberalizing countries are often concerned that cross-border mergers & acquisitions, in contrast to greenfield investments, might have an adverse effect on domestic firms and consumers. However, given that domestic assets are sufficiently scarce, we identify a preemption effect and an...
Persistent link: https://www.econbiz.de/10005082488
This paper studies privatization policy in an international oligopoly. The argument that equal treatment of foreign investors will be detrimental to domestic welfare by shifting profits from domestic to foreign firms is shown to be less relevant in privatization auctions than in greenfield FDI...
Persistent link: https://www.econbiz.de/10005419497
This paper determines the equilibrium market structure in an international oligopoly which is opened up by a privatization. Market power is shown to be an important determinant of the equilibrium market structure, when greenfield investment costs are high. When the greenfield investment costs...
Persistent link: https://www.econbiz.de/10005419531
stricter, but not too strict, merger and cartel policies tend to increase the incentive for innovations for sale by ensuring …
Persistent link: https://www.econbiz.de/10005419538
Investment liberalizing countries are often concerned that cross-border mergers & acquisitions, in contrast to greenfield investments, might have an adverse effect on domestic firms and consumers. However, given that domestic assets are sufficiently scarce, we identify a preemption effect and an...
Persistent link: https://www.econbiz.de/10005419556
This paper determines the equilibrium market structure in a mixed international oligopoly, where the state assets are sold at an auction. The model suggests that low greenfield costs and low trade costs induce foreign acquisitions. The intuition is that domestic firms can then not prevent...
Persistent link: https://www.econbiz.de/10005645330