This study investigates the impact of firm-specific discount factors on merger formation and market performance. We … explain merger formation and the impact on product market performance. More specifically, we find that acquiring firms …

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 …

and industry merger and acquisition activity. All of these effects are stronger for smaller firms than for larger firms …

-specific discount factors explain firms' production decisions. We also find that firms' discount factors and merger acquisition … strategies explain heterogeneous merger outcomes. Our results show that acquiring firms characterized by low discount factors …

We investigate consequences of a situation in which a merged subgroup of firms leads the market, after which merger … may prevent efficiency of the merger to improve social welfare; cost synergy may excessively reinforce the phenomenon …

We study the effects of merger on firm entry, product variety and prices in the retail craft beer market in California … a counterfactual merger where a large brewery acquires multiple craft breweries. In most markets, we find that new firms … likely to see an increase in product variety, which moderates the loss of consumer surplus from the merger's price effects …

media content, including the AT&T-Time Warner and the Disney-Fox mergers. Using a theory-driven approach, we examine …, we address three research questions: (i) Is the current development of analyzing industry with its recent merger activity … merger control in this industry, as well as a more active abuse control against already vertically-integrated media companies …

prices, a smaller or larger subset of all potential products is sold in the market. For an arbitrary merger of a supplier … with a group of retailers, we characterize the post-merger equilibrium behavior and show how the changes of all performance … and consumer welfare, can be computed efficiently. When the merger is strictly vertical, i.e., involves a single retailer …

to biased estimation of demand elasticities. We simulate a merger between American and US Airways and find that product … repositioning and post-merger outcomes depend on how we model the characteristics of the merged firm as a function of the pre-merger …

Common ownership fundamentally upsets the well-settled merger enforcement ecosystem. Not only it challenges basic … principles informing merger policy such as the presumed profitability of mergers for the merging firms and the merger …-specificity of potential efficiencies but also it works against implementing tools and presumptions in merger practice such as …