Mallorca is the most popular foreign travel destination for German tourists, with almost five million flying to the Balearic island every year. However, the coronavirus pandemic brought passenger air traffic to a virtual standstill in March 2020. Flights to Mallorca resumed in June 2020, but the...

In our paper targets, by setting a reserve price, screen acquirers on their (expected) ability to generate merger-specific synergies. Both empirical evidence and many common merger models suggest that the difference between high- and low-synergy mergers becomes smaller during booms. This implies...

We analyse the effects of investment decisions and firms internal organisation on the efficiency and stability of horizontal mergers. In our framework economies of scale are endogenous and there might be internal conflict within merged firms. We show that often stable mergers do not lead to more...