This paper studies the welfare consequences of a vertical merger that raises rivals' costs when downstream competition … is à la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can … price paid by the non-merging firms the merger thereby shifts production away from those relatively inefficient producers in …

profit maximization of merging firms in differentiated product industries. Using pre- and post-merger industry data, I am … Post-Nabisco merger. My results show an increasing degree of joint profit maximization of the merged entities over the … first two years after the merger, eventually leading to almost full maximization of joint profits. I find that between 9 …

information about suitable merger targets and to manage the merged corporation in case of an acquisition. Our results show that … high-powered incentives and, hence, a high personal income at the merger-management stage. We derive conditions under which …