Balmaceda, Felipe - In: Journal of Institutional and Theoretical Economics (JITE) 165 (2009) 3, pp. 454-486
I propose a model of mergers in which synergies and CEO power play a crucial role. A merger is modeled as a bargaining game between the acquiring and the target board of directors, with the gains from a merger divided according to the generalized Nash bargaining solution. The model's...