Can a Merger Take Place among Symmetric Firms?

Mahelet Fikru () and Sajal Lahiri

Studies in Microeconomics, 2013, vol. 1, issue 2, 155-162

Abstract: The literature on mergers and acquisitions shows that a merger among identical firms does not take place because it is not profitable. This study forms a theoretical framework for understanding mergers among identical firms in a pollution-intensive sector. When a merger occurs the market structure changes and so do optimal environmental policies. This flexibility in policy provides the incentive to merge even if there are no efficiency gains.

Keywords: Polluting firms; symmetric firms; flexible policy; emission tax; merger; market structure (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:miceco:v:1:y:2013:i:2:p:155-162

DOI: 10.1177/2321022213501255

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