Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Cross-border mergers in a mixed oligopoly
AU - Heywood, John
AU - Mcginty, Matthew
PY - 2011/1
Y1 - 2011/1
N2 - This paper identifies the unique strategic issues of cross-border mergers in a mixed oligopoly showing that the presence of a welfare maximizing public firm increases the incentive for such mergers. The well-known merger paradox that two-firm mergers are rarely profitable is substantially relaxed in the cases of both linear and convex production costs. The ability to identify profitable two-firm mergers in this context takes on added importance as the recent cross-border merger wave often involved industries with public firms.
AB - This paper identifies the unique strategic issues of cross-border mergers in a mixed oligopoly showing that the presence of a welfare maximizing public firm increases the incentive for such mergers. The well-known merger paradox that two-firm mergers are rarely profitable is substantially relaxed in the cases of both linear and convex production costs. The ability to identify profitable two-firm mergers in this context takes on added importance as the recent cross-border merger wave often involved industries with public firms.
KW - Cross border mergers
KW - Mixed oligopoly
KW - Merger paradox
U2 - 10.1016/j.econmod.2010.08.011
DO - 10.1016/j.econmod.2010.08.011
M3 - Journal article
VL - 28
SP - 382
EP - 389
JO - Economic Modelling
JF - Economic Modelling
SN - 0264-9993
IS - 1-2
ER -