The focus of this paper is the effect of merger proposals on the expected profitability of the bidder and the target. The authors illustrate how an unsuccessful bid may increase the profitability of the target but reduce the profitability of the bidding firm, relative to the profitability of the...

Many retailers promise that they will not be undersold by rivals and extend their promise to include their own future prices. That is, many retailers combine elements of both price-matching guarantees and retroactive most-favored-customer clauses. This is puzzling because the extant literature...

This paper considers the incentives for risk-averse firms to share their private information. They show that the introduction of risk aversion in some cases reverses the result in the literature that no such incentives exist. Further, they show that the output level of risk-averse Cournot...