In this paper we consider a market situation in which initially there is an unintegrated monopoly upstream that owns an essential facility and two dowstream firms. Then the market is liberalized allowing upstream entry and vertical integration. The equilibrium entry mode - sharing the incumbent...

According to Williamson (1975), a divisionalized and fully decentralized structure, the so called M-form, is the optimal structure via which firms that pursue diversification gain economic benefits from internalizing transactions. However, empirical evidence shows that a centralized,...

In this paper a simple model of mergers in which synergies, private benefits and CEO power play a crucial role is proposed. A merger is modeled as a bargaining process between the acquiring and target board with the gains from a merger divided according to Rubinstein's alternating-offer game...