Showing 1 - 10 of 705,079
In contrast to empirical evidence, recent theories of cross-border mergers and acquisitions (M&As) assume perfect knowledge transfers - from high to low productivity firms - between acquirer and target. Using the Melitz (2003) model of heterogeneous firms, we develop a matching model of...
Persistent link: https://www.econbiz.de/10011862878
Previous work on exit in declining industries has neglected mergers. We examine a simple model that predicts which declining industries experience horizontal mergers. Mergers are more likely if 1) market concentration is high; 2) the inverse demand curve is steep at high levels of output and...
Persistent link: https://www.econbiz.de/10011569023
This paper explains why consolidation acquisitions occur in waves and it predicts the differing role each firm is likely to play in the consolidation game. We propose that whether a firm assumes the role of rival consolidator, target, or passive observer depends on the position of the firm...
Persistent link: https://www.econbiz.de/10011372521
Merger value is frequently evaluated in single market contexts without considering possible gains stemming from firms … multimarket firms create incremental value. We establish a simple theoretical model that determines merger value in a multimarket … firm environment. The model enables us to derive merger values as being independent of post-merger market shares, but …
Persistent link: https://www.econbiz.de/10011549386
In this paper, we offer a hybrid approach to merger simulation in which we allow rather extensive pre-testing to … suggest the ‘correct', or most desirable, form for the underlying demand curves. Our application is the merger between the … said, allowing the data to inform the researcher about the appropriate form of demand seems a worthwhile effort for merger …
Persistent link: https://www.econbiz.de/10013139143
addition to standard merger price effects. ccGUPPI is sufficient to correctly predict whether a merger of capacity … full merger simulation …
Persistent link: https://www.econbiz.de/10012896939
This paper examines whether cartel breakdown provokes a period of intensive merger activity amongst the former …
Persistent link: https://www.econbiz.de/10013034353
Persistent link: https://www.econbiz.de/10001788894
inputs and outputs. Results are mixed for outcomes related to variety and product quality. Literature on merger effects on … derive a number of ideas and options for merger policy. …
Persistent link: https://www.econbiz.de/10014310467
This paper uses an endogenous merger formation approach in a concentrated international oligopoly to examine the … effects of trade liberalization on the nature of merger incentives (national vs. international). The effects of unilateral … liberalization has been accompanied by an increase in international merger activity. Among equilibrium market structures …
Persistent link: https://www.econbiz.de/10011591652