Horizontal Merger under Strategic Tax Policy

Chih-Chen Liu, Arijit Mukherjee and Leonard Wang ()

No 4996, CESifo Working Paper Series from CESifo

Abstract: We show that the presence of a strategic tax policy increases the incentive for a horizontal merger compared to the situation with no tax policy. Thus, we point towards a new factor, viz., strategic tax policy, for increasing the incentive for a horizontal merger that has been ignored in the existing literature. In contrast to the usual belief, we also show that a horizontal merger may benefit the consumers and the society.

Keywords: merger; tax policy; social welfare (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Horizontal merger under strategic tax policy (2015)
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