Filson, Darren; Songsamphant, Bunchon - In: Applied Economics Letters 12 (2005) 2, pp. 129-132
Previous work on exit in declining industries has neglected mergers. This paper examines a simple model that illustrates how mergers can affect the order of exit. The model also predicts which declining industries experience horizontal mergers. Mergers are more likely if (1) the inverse demand...