Lindqvist, Tobias; Stennek, Johan - In: Experimental Economics 8 (2005) 3, pp. 267-284
This paper tests the insiders’ dilemma hypothesis in a laboratory experiment. The insiders’ dilemma means that a profitable merger does not occur, because it is even more profitable for each firm to unilaterally stand as an outsider (Stigler, 1950; Kamien and Zang, 1990, 1993). The...