This paper analyzes an optimal antitrust policy on horizontal mergers under asymmetric information when antitrust agency cannot observe the post-merger private cost of merged firms. By using a discrete mechanism design approach with self-selection, this paper proposes an incentive compatible...

We construct a simultaneous bilateral bargaining model and demonstrate analytically that if bargaining power is any constant across a group of buyers, then bargaining position will not be improved through merger in the absence of relative size effects. However, differences in post-merger...

This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the...

Theoretical research has investigated the relevance of entry-inducing effects as countervailing factor to a merger-related increase in market power. We use route-level data for the America West Airlines – US Airways merger (2005) to investigate whether such an effect can be identified...