Merger Profitability in Unionized Oligopoly PDF Download

Author: Kjell Erik Lommerud
Publisher:
ISBN:
Category : Consolidation and merger of corporations
Languages : en
Pages : 40

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Author: Kathrin Tiecke
Publisher: GRIN Verlag
ISBN: 3640928865
Category : Business & Economics
Languages : en
Pages : 93

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Diploma Thesis from the year 2011 in the subject Economics - Micro-economics, grade: 2,0, Humboldt-University of Berlin (Wirtschaftstheorie II), course: VWL - Mikroökonomie, Industrial Organization, language: English, abstract: ...Farell and Shapiro state that there is no necessity for mergers as cooperation and coordination can be achieved at an equivalent level via contracts: "..., modern economic theory observes that virtually anything that can be done with a merger can in principle be done instead with some kind of contract, perhaps a very complex (or restrictive) one." (Farrell and Shapiro 2001, p. 691)... 6.2 Concluding Remarks ...In the last section I introduce the strand of economic literature that deals with the process of mergers under uncertain efficiency gains. By introducing uncertain synergies to Cournot merger models the merger paradox can be solved in all above presented approaches and compared to the deterministic models there is a wider scope of profitable mergers. The informational asymmetry after the merger benefits the merger members although efficiency gains may be not obtained post merger. Thus mergers are more likely to be beneficial compared to the case where uncertain efficiency gains are not assumed. It has been shown that the incentives to merger coincide with the degree of uncertainty and when firms are aware of this uncertainty they are able to prepare for the post-merger integration process much better since post-merger actions can be specified more accurately. Any merger with uncertain synergies that needs to be approved by competition agencies can positively affect the approval by evaluating the uncertain efficiency gains with the required post-merger process... ...this may be an attempt to replicate the merger failures in the real world. To analyze further the role of uncertain synergies, models that depart from the one-shut nature should be implemented. This might give insights why merger formations appear wavelike and if the e

Author: Borja Mesa-Sánchez
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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In the context of an international unionized oligopoly with vertical differentiation, the pattern of mergers is investigated. We show that mergers between firms producing the same-quality good lead wages to the reservation level, as well as maximize industry profits. However, it turns out that most of the market structure equilibria are shaped by mergers between producers of differentiated and homogeneous goods. This is so because mergers increase the market share of participating firms at the expense of that of the outsiders, leading to a scenario of preemptive mergers, where the main driving force can be to preempt rival mergers. Finally, it is shown that if three-firm mergers are not allowed, the strategic behavior of firms is eliminated, mergers between same-quality producers occur and social welfare is maximized.

Author: Daniel Gore
Publisher: Cambridge University Press
ISBN: 1107007720
Category : Business & Economics
Languages : en
Pages : 559

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Provides a clear, concise and practical overview of the key economic techniques and evidence employed in European merger control.

Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Luis Suarez-Villa
Publisher: State University of New York Press
ISBN: 1438454872
Category : Political Science
Languages : en
Pages : 380

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The largest, wealthiest corporations have gained unprecedented power and influence in contemporary life. From cradle to grave the decisions made by these entities have an enormous impact on how we live and work, what we eat, our physical and psychological health, what we know or believe, whom we elect, and how we deal with one another and with the natural world around us. At the same time, government seems ever more subservient to the power of these oligopolies, providing numerous forms of corporate welfare—tax breaks, subsidies, guarantees, and bailouts—while neglecting the most basic needs of the population. In Corporate Power, Oligopolies, and the Crisis of the State, Luis Suarez-Villa employs a multidisciplinary perspective to provide unprecedented documentation of a growing crisis of governance, marked by a massive transfer of risk from the private sector to the state, skyrocketing debt, great inequality and economic insecurity, along with an alignment of the interests of politicians and a new, minuscule but immensely wealthy and influential corporate elite. Thanks to this dysfunctional environment, Suarez-Villa argues, stagnation and a vanishing public trust have become the hallmarks of our time.

Author:
Publisher:
ISBN:
Category : Conglomerate corporations
Languages : en
Pages : 74

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Author:
Publisher:
ISBN:
Category : Conglomerate corporations
Languages : en
Pages : 72

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Author:
Publisher:
ISBN:
Category : Conglomerate corporations
Languages : en
Pages : 76

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Author: Damian Chalmers
Publisher: Cambridge University Press
ISBN: 9780521527415
Category : Law
Languages : en
Pages : 1370

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Book Description
Comprehensive student textbook covering all aspects of European Union law.