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The merger paradox in a mixed oligopoly

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The merger paradox in a mixed oligopoly. / Artz, Benjamin; Heywood, John; Mcginty, Matthew.
In: Research in Economics, Vol. 63, No. 1, 03.2009, p. 1-10.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Artz, B, Heywood, J & Mcginty, M 2009, 'The merger paradox in a mixed oligopoly', Research in Economics, vol. 63, no. 1, pp. 1-10. https://doi.org/10.1016/j.rie.2008.10.003

APA

Artz, B., Heywood, J., & Mcginty, M. (2009). The merger paradox in a mixed oligopoly. Research in Economics, 63(1), 1-10. https://doi.org/10.1016/j.rie.2008.10.003

Vancouver

Artz B, Heywood J, Mcginty M. The merger paradox in a mixed oligopoly. Research in Economics. 2009 Mar;63(1):1-10. doi: 10.1016/j.rie.2008.10.003

Author

Artz, Benjamin ; Heywood, John ; Mcginty, Matthew. / The merger paradox in a mixed oligopoly. In: Research in Economics. 2009 ; Vol. 63, No. 1. pp. 1-10.

Bibtex

@article{6cb63a3d14864ed295916cbecce9fd02,
title = "The merger paradox in a mixed oligopoly",
abstract = "This paper examines the set of surplus maximizing mergers in a model of mixed oligopoly. The presence of a welfare maximizing public firm reduces the set of mergers for which two private firms can profitably merge. When a public firm and private firm merge, the changes in welfare and profit depend on the resulting extent of private ownership in the newly merged firm. When the government sets that share to maximize post merger welfare as assumed in the privatization literature, the merger paradox will often remain and the merger will not take place. Yet, we show there always exists scope for mergers that increase profit and increase (if not maximize) welfare. Interestingly, these mergers often include complete privatization.",
keywords = "Merger paradox, Mixed oligopoly , Convex costs",
author = "Benjamin Artz and John Heywood and Matthew Mcginty",
year = "2009",
month = mar,
doi = "10.1016/j.rie.2008.10.003",
language = "English",
volume = "63",
pages = "1--10",
journal = "Research in Economics",
issn = "1090-9443",
publisher = "Academic Press Inc.",
number = "1",

}

RIS

TY - JOUR

T1 - The merger paradox in a mixed oligopoly

AU - Artz, Benjamin

AU - Heywood, John

AU - Mcginty, Matthew

PY - 2009/3

Y1 - 2009/3

N2 - This paper examines the set of surplus maximizing mergers in a model of mixed oligopoly. The presence of a welfare maximizing public firm reduces the set of mergers for which two private firms can profitably merge. When a public firm and private firm merge, the changes in welfare and profit depend on the resulting extent of private ownership in the newly merged firm. When the government sets that share to maximize post merger welfare as assumed in the privatization literature, the merger paradox will often remain and the merger will not take place. Yet, we show there always exists scope for mergers that increase profit and increase (if not maximize) welfare. Interestingly, these mergers often include complete privatization.

AB - This paper examines the set of surplus maximizing mergers in a model of mixed oligopoly. The presence of a welfare maximizing public firm reduces the set of mergers for which two private firms can profitably merge. When a public firm and private firm merge, the changes in welfare and profit depend on the resulting extent of private ownership in the newly merged firm. When the government sets that share to maximize post merger welfare as assumed in the privatization literature, the merger paradox will often remain and the merger will not take place. Yet, we show there always exists scope for mergers that increase profit and increase (if not maximize) welfare. Interestingly, these mergers often include complete privatization.

KW - Merger paradox

KW - Mixed oligopoly

KW - Convex costs

U2 - 10.1016/j.rie.2008.10.003

DO - 10.1016/j.rie.2008.10.003

M3 - Journal article

VL - 63

SP - 1

EP - 10

JO - Research in Economics

JF - Research in Economics

SN - 1090-9443

IS - 1

ER -