We model takeovers as a bargaining process and explain termination fees for, both, the target and the acquirer, subject … to parties’ bargaining power and outside options. In equilibrium, termination fees are offered by firms with outside … options in exchange for a greater share of merger synergies. Termination fees decrease in firms’ bargaining power, and …

This paper provides strategic foundations for the insight that the bargaining power of employees depends on the firm … bargaining (i.e. the negotiators’ fall-back positions and outside options); they affect the nature of the bargaining process …

I estimate a search-and-bargaining model of a decentralized market to quantify the effects of trading frictions on …

bargaining power. Using a theoretical model, we show that at higher initial production cost differentials, welfare is higher …

ultimately not formed. Articulation of hypothetical outside options in the bargaining process determines the relative bargaining …, competitive equilibrium with free group formation and bargaining cum voice, endogenizes the outside options as well as the power …

their bargaining power is low, in which case they prefer wholesale price contracts. While welfare is maximized under two …

and firms threat points in the bargaining process induced by trade. To estimate this model, I use a unique matched … my results, I find a bargaining power below 0.20. I also show that workers’ wages deteriorate through competitive …

Palestinian factions. We conjecture that these differences are due to the different positions of the factions vis-à-vis bargaining …