, we evaluate the 2013 merger between Amer- ican Airlines and US Airways. Our results highlight that spillovers in entry … and post-merger network readjustments play an important role in shaping post-merger outcomes. …

We analyze a Bayesian merger game under two-sided asymmetric information about firm types. We show that the standard … prediction of the lemons market model–if any, only low-type firms are traded–is likely to be misleading: Merger returns, i.e. the … difference between pre- and post-merger profits, are not necessarily higher for low-type firms. This has two implications. First …