unobservability of contract terms favor cross-border acquisition relative to greenfield investment. We also show that while a cross …-border acquisition reduces welfare, greenfield investment can be welfare-improving. These results suggest that policy should distinguish …

for a foreign direct investment are considered: Greenfield investment versus acquisition. In contrast to existing … approaches, the acquisition price and the profits under both entry modes are endogenously determined. Interestingly, we find that … it is acquisition. …

also indirectly since it determines the outside option of potential acquisition targets and joint venture partners. In … profitability of greenfield investment both reduces the acquisition price in the case of M&A, and gives local firms an incentive to …

the case of FDI, the firm faces two options: greenfield investment or merger and acquisition (M&A). If it selects …

greenfield; the middle matches operate under joint ownership; and the best matches integrate via full acquisition. We link the …

This study shows that when there is multinational competition for foreign acquisition, the strategic use of a consumer … welfare argument in regulating foreign market entry leads to a preemptive foreign acquisition. Even under fierce competition …, foreign acquisition will emerge as part of a non-cooperative equilibrium (although multinationals would have gained more had …