Product information which is beneficial for an individual consumer may hurt if disseminated widely. Even with rational expectations, a fallacy of composition may occur if information leads to demand and price increases.

We use the Korean Financial Crisis as a natural laboratory for examining interactions among firm diversification, equilibrium capital structure and tail probability events. When the crisis hit in 1997, several major firms, including a large number of highly leveraged conglomerates (Chaebols),...

Product information which is beneficial for an individual consumer may hurt if disseminated widely. Even with rational expectations a fallacy of composition may occur if information leads to demand and price increases

Policy discussions and a Supreme Court decision interpret retailer services induced by retail price maintenance (RPM) as enhancing consumer surplus (CS) and welfare enhancing, marginalizing dissenting opinions which use similar models but with different parameters. However if presales services...

The Brazilian privatization program raised about US$100 billion as a result of the sale of state-owned firms and assets over the period 1990 to 2001. Despite official claims that the privatization auctions were successful in revenue raising, statistical evidence suggests that the buyers, not the...

According to common wisdom, mergers between complementary-goods firms should not raise anti-competitive concerns. Regulatory authorities rarely challenge them indeed. In this paper, I offer an alternative perspective in a model of price-competition in a complementary oligopoly industry with...

A structural event study methodology accounts for the interaction of two M&A effects: synergy (total value) and dominance (bargaining power). This interaction jointly (simultaneously) determines the parties' abnormal returns. An application in the context of corporate governance illustrates our...