This paper analyzes capital market reactions to international bank M&A. We investigate combined stock return patterns of targets, bidders, and their peers upon takeover announcement, and closing or withdrawal. We distinguish five common M&A hypotheses and relate characteristic and mutually...

Owing to the significant role of financial sector reforms in economic growth, several studies have examined its transmission channels. This paper focuses on the stock market channel by investigating the impact of financial sector reforms on stock market growth in Ghana from 1990 to 2019. A...

This paper considers the effects of raising the cost of entry for a potential competitor on infinite-horizon Markov-perfect duopoly dynamics with ongoing demand uncertainty. All entrants serving the model industry incur sunk costs, and exit avoids future fixed costs. We focus on the unique...

Net corporate profits have persisted at historical highs for almost 10 years. Such levels exceed what can be profitably re-invested, as evidenced by aggregate dividend payouts and buybacks nearing 6% of GDP. We argue that at such levels corporate profits operate effectively as a tax on the...

The digital revolution of pricing enables retailers to change their prices more frequently than ever before. While the industry endorses this development, critics fear it could foster excessive price fluctuations. This paper studies price fluctuations in the context of brick-and-mortar retailing...

This paper demonstrates that when an industry faces potential entry and this threat of entry constrains pre-entry prices, cost and conduct are not identified from the comparative statics of equilibrium. In such a setting, the identifying assumption behind the well-established technique of...

To aid in the description and estimation of the tremendous recent growth in the collaborative economy, we provide a model for the dynamics of sharing, subject to fixed costs and imperfect price formation. The sharing economy comprises a set of infinitely lived, heterogeneous suppliers, who take...

Competitors privately sharing price intentions is universally prohibited under antitrust/competition law. In contrast, there is no common well-accepted treatment of competitors privately sharing prices. This paper shows that firms sharing prices leads to higher prices. Based on this theory of...

Entry by multinational enterprises (MNEs) into emerging markets has increased substantially over the last decades. Many of these MNE entries have taken place in concentrated markets. To capture these features, we construct a strategic interaction model of MNE cross-border acquisition and...

There is a growing concern that U.S. merger control may have been too lenient, but empirical evidence remains limited. Event studies have been used as one method to acquire empirical insights into the competitive effects of mergers. However, existing work suffers from strong identifying...