Cross-border mergers in a mixed oligopoly

John Heywood and Matthew McGinty

Economic Modelling, 2011, vol. 28, issue 1-2, 382-389

Abstract: 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.

Keywords: Cross; border; mergers; Mixed; oligopoly; Merger; paradox (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:1-2:p:382-389

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