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 …

industries in the sector-specific takeover market, this working paper proves the common knowledge for the example of … corporate characteristics are of significant importance. With respect to prevailing takeover strategies, the survey reveals a …-affected takeover strategies that are elaborated on more closely within the working paper. Examining an acquisition focus in terms of …

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 …

's stand-alone value and a component of the synergies that would be realized by the merger involving his firm. We characterize …, hence transfers can be made contingent on the new information accruing after the merger. Second, we study the case of … identify necessary and sufficient conditions for the implementability of efficient merger rules. In the second case, we show …

' types. We show that there is always a no-merger equilibrium where firms do not consent to a merger, irrespective of their … type. There may also be a cut-off equilibrium if the expected merger returns satisfy a suitable single crossing condition …, which will hold if a firm's merger returns are essentially monotone decreasing in its type. Applying our analysis to the …

We present a model of takeover where the target optimally sets its reserve price. Under relatively standard symmetry … restrictions, we obtain a unique equilibrium. The probability of takeover is only a function of the number of firms and of the … Bertrand models. A takeover is more likely under Bertrand competition if goods are substitutes and more likely under Cournot …

In several European merger cases competition authorities have demanded that the merging firm auctions off virtual …