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 …

neglected. We introduce them into a standard oligopoly model of horizontal merger by assuming an (empirically supported …) decrease in labour demand due to merger-specific synergies and derive welfare effects. We find that efficiency benefits from …-side effects remain negligible. Eventually, policy conclusions for merger control are discussed. …

We consider takeover bidding in a Cournot oligopoly when firms have private information concerning the synergy effect …, supplemented by entry fees. Since non-merged firms benefit from a merger if the synergies are low, bidders are subject to a … oligopoly game. …

This paper extends the static analysis of oligopoly structure into an infinite-horizon setting with sunk costs and …

. Furthermore, a merger can lead to an equilibrium in which only the high-demand market is served. This is more likely (i) the lower … consumers' transportation costs and (ii) the higher the concentration of the industry. Therefore, merger incentives are much …

capacity constrained producers. …

This paper analyzes the interaction between price and inventory decisions in an oligopoly industry and its implications … endogenous prices and strategic oligopoly competition. We show that the optimal decision rule is an (S, s) order policy and …