We explain the empirical puzzle why mergers reduce profits and raise share prices. If being an “insider” is better than … mergers occur, when they occur, and how the surplus is shared. …

We provide a possible explanation for the empirical puzzle that mergers often reduce profits, but raise share prices … derived in an endogenous-merger model, predicting the conditions under which mergers occur, when they occur, and how the …

We explain the empirical puzzle why mergers reduce profits, and raise share prices. If being an 'insider' is better …, since the risk of becoming an outsider is eliminated. We also show that mergers increasing consumers' prices, while …-competitive mergers. These results are derived in an endogenous-merger model, predicting the conditions under which mergers occur, the …

mergers difficult. Mergers that should occur in equilibrium do not, since they require an unequal split of surplus. …

mergers difficult. Mergers that should occur in equilibrium do not, since they require an unequal split of surplus. …

mergers difficult. Mergers that should occur in equilibrium do not, since they require an unequal split of surplus.   …

) considerations also make profitable mergers difficult. Mergers that should occur in equilibrium do not, since they require an unequal …

relative to what is socially optimal. Moreover, prohibiting acquisitions may increase or decrease consumer surplus. The more …, the more likely is that consumers benefit (suffer) following an acquisition. These results are robust to acquisitions …

relative to what is socially optimal. Moreover, prohibiting acquisitions may increase or decrease consumer surplus. The more …, the more likely is that consumers benefit (suffer) following an acquisition. These results are robust to acquisitions …