and after a merger. For this, we use a controlled laboratory experiment where subjects decide on the level of treatment … quality as head of a hospital. We find that the post-merger average quality is significantly lower than the average pre-merger … quality. However, for merger insiders and outsiders, average quality choices are significantly higher than predicted for pure …

advantage from taking over some third firm, i can be rational for the first firm to preempt this merger with a takeover attempt … conduct a takeover, even when doing so reduces shareholder value. If a firm fears that one of its rivals will gain competitive …