We analyze a Bayesian merger game under two-sided asymmetric information about firm types. We show that the standard … prediction of the lemons market model-if any, only low-type firms are traded-is likely to be misleading: Merger returns, i.e. the … difference between pre- and post-merger profits, are not necessarily higher for low-type firms. This has two implications. First …

, which may not be possible since entry decisions are secret. By removing or mitigating this coordination failure, a merger … among laggards may lead to more entry (or innovation). Such a merger will also be more likely to benefit consumers when the … merger. Importantly, we find that in the presence of fixed entry costs and endogenous entry, fixed cost synergies are …

patent-intensive, and legal and economic theory has long explored the role of patents in shaping industry structure …—the number, size, and character of firms in an industry. However, such theory only explains one facet of industry structure. This … efficiencies of size, and significant merger and acquisition activity. It also argues that several common “fragmentation drivers …

I analyze the acquirers in both withdrawn and completed merger deals to disentangle the effects of signaling from those … withdrawn counterparts over the six months following initial announcement. However, if an announced stock merger later falls …

required level of merger-specific cost reduction is larger if the fraction of multi-homing consumers is larger. These results …

We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are …

We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are …