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 …

This paper uses an endogenous merger formation approach in a concentrated international oligopoly to examine the … effects of trade liberalization on the nature of merger incentives (national vs. international). The effects of unilateral … liberalization has been accompanied by an increase in international merger activity. Among equilibrium market structures …

neglected. We introduce them into a standard oligopoly model of horizontal merger by assuming an (empirically supported …) decrease in labour demand due to merger-specific synergies and derive welfare effects. We find that efficiency benefits from …-side effects remain negligible. Eventually, policy conclusions for merger control are discussed. …

. Furthermore, a merger can lead to an equilibrium in which only the high-demand market is served. This is more likely (i) the lower … consumers' transportation costs and (ii) the higher the concentration of the industry. Therefore, merger incentives are much …

competition policy. – oligopoly ; dominant position ; market power ; competition policy ; merger … the dominance concept to also include oligopolistic dominance is sensible and based on widely accepted economic theory. I … in economic theory and empirical economic evidence related to the oligopolistic dominance that is relevant to the …

This paper determines the equilibrium market structure in an international oligopoly which is opened up by a …

This paper studies privatization policy in an international oligopoly. The argument that equal treatment of foreign …