Over two-thirds of FTC and DOJ merger challenges in fiscal 1998 and 1999 were resolved by "negotiated restructuring." Yet, while there is a lot of economics literature on the effects of mergers, I am not aware of much on merger fixes and divestitures. Similarly, while there is a lot of economics...

In Farrell and Maskin (1989), the authors present sufficient conditions for weakly renegotiation-proof payoffs in their Theorem 1 (p. 332). We show that a step in the proof of this theorem is not correct by giving a counterexample. Nevertheless, the sufficient conditions remain true, and we...