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Endogenous Mergers in Concentrated Markets

Persson, Lars; Horn, Henrik - Institutet för Näringslivsforskning (IFN) - 1998

generalizes the traditional IO approach, employing ideas on coalition-formation from cooperative game theory. The model suggests …

Persistent link: https://www.econbiz.de/10005419495

Anti- versus Pro-Competitive Mergers

Fridolfsson, Sven-Olof - Institutet för Näringslivsforskning (IFN) - 2007

In a framework where mergers are mutually excluding, I show that firms pursue anti- rather than (alternative) pro-competitive mergers. Potential outsiders to anti-competitive mergers refrain from pursuing pro-competitive mergers if the positive externalities from anti-competitive mergers are...

Persistent link: https://www.econbiz.de/10005419523

Why Mergers Reduce Profits, and Raise Share Prices

Fridolfsson, Sven-Olof; Stennek, Johan - Institutet för Näringslivsforskning (IFN) - 1999

We demonstrate a "preemptive merger mechanism" which may explain the empirical puzzle why mergers reduce profits, and raise share prices. A merger may confer strong negative externalilties on the firms outside the merger. If being an "insider" is better than being an "outsider", firms may merge...

Persistent link: https://www.econbiz.de/10005419544

Why Event Studies Do Not Detect Anti-Competitive Mergers

Fridolfsson, Sven-Olof; Stennek, Johan - Institutet för Näringslivsforskning (IFN) - 2000

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.

Persistent link: https://www.econbiz.de/10005645370

Should Mergers be Controlled?

Fridolfsson, Sven-Olof; Stennek, Johan - Institutet för Näringslivsforskning (IFN) - 2000

Anticompetitive mergers benefit competitors more than the merging firms. We show that such externalities reduce firms' incentives to merge (a holdup mechanism). Firms delay merger proposals, thereby foregoing valuable profits and hoping other firms will merge instead - a war of attrition. The...

Persistent link: https://www.econbiz.de/10005645389

The Insiders' Dilemma: An Experiment on Merger Formation

Lindqvist, Tobias; Stennek, Johan - Institutet för Näringslivsforskning (IFN) - 2001

This paper tests the insiders' dilemma hypothesis in a laboratory experiment. The insiders' dilemma means that a profitable merger does not occur, because it is even more profitable for each firm to unilaterally stand as an outsider (Kamien and Zang, 1990 and 1993). The experimental data...

Persistent link: https://www.econbiz.de/10005645424

Industry Concentration and Welfare - On the Use of Stock Market Evidence from Horizontal Mergers

Fridolfsson, Sven-Olof; Stennek, Johan - Institutet för Näringslivsforskning (IFN) - 2006

There is diverging empirical evidence on the competitive effects of horizontal mergers: consumer prices (and thus presumably competitors' profits) often rise while competitors' share prices fall. Our model of endogenous mergers provides a possible reconciliation. It is demonstrated that...

Persistent link: https://www.econbiz.de/10005645428

Local Economies and General Elections: The Influence of Municipal and Regional Economic Conditions on Voting in Sweden 1985–2002

Elinder, Mikael - Institutet för Näringslivsforskning (IFN) - 2010

This paper presents a detailed analysis of voters’ responses to municipality and regional-level unemployment and economic growth, using panel data on 284 municipalities and 9 regions, covering Swedish general elections from 1982 to 2002. The preferred specification suggests that a reduction in...

Persistent link: https://www.econbiz.de/10008621822

Correcting Mistakes: Cognitive Dissonance and Political Attitudes in Sweden and the United States

Elinder, Mikael - Institutet för Näringslivsforskning (IFN) - 2009

Cognitive dissonance theory predicts that the act of voting makes people more positive toward the party or candidate … turnout provided by the voting age restriction. I improve on previous studies by investigating political attitudes, measured … just before elections, when they are highly predictive of voting. In contrast to earlier studies I find no effect of voting …

Persistent link: https://www.econbiz.de/10004964395

Does Hedonic Price Indexing Change Our Interpretation of Economic History? Evidence from Swedish Electrification

Edquist, Harald - Institutet för Näringslivsforskning (IFN) - 2008

Rapid price decreases for ICT-products in the 1990s have been largely attributed to the introduction of hedonic price indexes. Would hedonic price indexing also have large effects on measured price and productivity during other technological breakthroughs? This paper investigates the impact of...

Persistent link: https://www.econbiz.de/10005082490