highlight that cross-ownership can be preferable to a horizontal merger under Cournot competition. Not only is it more …We examine the profitability of cross-ownership in an oligopolistic industry where firms compete as Cournot rivals. We … profitable beyond that participation ratio. This result may be called a cross-ownership paradox, analogous to the merger paradox …

are linear. The results help to reconcile theory with various empirical findings on mergers. -- efficient hedging …

horizontal merger of firms where the demand function is nonlinear. We take into consideration the open-loop equilibrium. We show … that in relation to the fact that the demand is nonlinear and prices follow some stickiness an incentive for small merger …

observations. Merger gains are decomposed into a technical efficiency effect, a harmony effect and a scale effect. The greatest … efficiency improvement potentials turn out to result from reducing individual inefficiencies while pure merger gains are found to …