We demonstrate a "preemptive merger mechanism" which may explain the empirical puzzle why mergers reduce profits, and … in a model of endogenous mergers which predicts the conditions under which a merger occurs, when it occurs, and how the …

This paper studies the interaction between the incentives for predation and mergers. I show that the incentive for …-riding problem associated with mergers, and second, destructive predation helps firms avoid the bidding competition. It is also shown … stronger, since it allows mergers but limits the bidding competition. …

Mergers and acquisitions (M&A) is the dominant form of Foreign Direct Investment (FDI), but has received but scarce …

Anticompetitive mergers increase competitors' profits, since they reduce competition. Using a model of endogenous … mergers, we show that such mergers nevertheless may reduce the competitors' share-prices. Thus, event-studies can not detect … anti-competitive mergers. …

the insiders' dilemma, i.e. profitable mergers do not occur. This strategy may thus be more profitable for a buyer than …

Theoretically, cross ownership may mitigate mergers, i.e. market concentrations. Holding a share in a competing firm …

This paper studies the interaction between the incentives for predation and mergers. I show that the incentive for …-riding problem associated with mergers, and second, destructive predation helps firms avoid the bidding competition. It is also shown … stronger, since it allows mergers bu limits the bidding competition. …

mergers difficult. Mergers that should occur in equilibrium do not, since they require an unequal split of surplus.   …