We analyze the effects of synergies from horizontal mergers in a Cournot oligopoly where principals provide their … agents with incentives to cut marginal costs prior to choosing output. We stress that synergies come at a cost which possibly … order to reduce her agency costs. Whenever this incentive effect dominates the well-known direct synergy effect, synergies …

We analyse the effects of investment decisions and firms internal organisation on the efficiency and stability of …. We show that often stable mergers do not lead to more e.ciency and may even lead to efficiency losses. These mergers lead … to lower total welfare, suggesting that a regulator should be careful in assuming that possible efficiency gains of a …

economies. Theories of optimal taxation conclude that these taxes are detrimental to production efficiency, when firms operate … production units. The present paper investigates the effects of taxation on production efficiency, accounting for the … effect of this "tax induced organizational change" on production efficiency ultimately depends on the characteristics of the …

We study upstream horizontal mergers and their potential efficiency gains. We show that an upstream horizontal merger … can give rise to two efficiency-enhancing effects when firms trade through two-part tariffs. It increases R&D investments … efficiency gains can overcome its anti-competitive effects in terms of welfare, we show that when firms merge usually both of the …

defense in merger control. -- Managerial Incentives ; Horizontal Mergers ; Antitrust ; Productive Efficiency Gains ; Synergies …We analyze the effects of synergies from horizontal mergers on managerial incentives. In contrast to synergies …, efficiency gains resulting from managerial effort are not merger specific, i.e., they may be realized by all firms before and …