We explain the empirical puzzle why mergers reduce profits, and raise share prices. If being an quot;insiderquot; is better than being an quot;outsider,quot; firms may merge to preempt their partner merging with a rival. The stock-value is increased, since the risk of becoming an outsider is...

Numerous empirical studies show that unions reduce wage differences. But surprisingly few attempts have been made to understand why. Swedish unions reveal that the reason is both ideological and strategic. Relying on employers to voluntarily increase higher wages, to protect efficiency-enhancing...

Sports organizations, Hollywood studios and TV channels grant satellite and cable networks exclusive rights to televise their matches, movies and media contents. Exclusive distribution prevents viewers from watching attractive programs and reduces the TV-distributors incentives to compete in prices.