that it is beneficial to be a non-merging rival firm to a large horizontal merger. Using a sample of mergers with expert …

We explain the empirical puzzle why mergers reduce profits, and raise share prices. If being an 'insider' is better …, since the risk of becoming an outsider is eliminated. We also show that mergers increasing consumers' prices, while …-competitive mergers. These results are derived in an endogenous-merger model, predicting the conditions under which mergers occur, the …

predicts the frequency of mergers and acquisitions to be negatively correlated with employment protection. These predictions …

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 anticompetitive mergers may reduce competitors' share prices, if the merger …

analysis supports the synergy hypothesis as a motive in horizontal mergers. …