Work

Merger waves: a model of endogenous mergers

Year: 2007

Type: article

Abstract: We develop a model of endogenous mergers to study their dynamic process. Firms choose whether, when, and with whom to merge. Two necessary conditions are identified for mergers to occur: firm heterogeneity and negative demand shocks. We show that mergers are strategic complements and therefore tend to occur in waves. Moreover, some mergers occur for strategic reasons in order to precipitate further mergers.

Source: The RAND Journal of Economics

DOI: 10.1111/j.1756-2171.2007.tb00052.x

Authors: Larry D. Qiu, Wen Zhou

Institutions: Hong Kong University of Science and Technology, University of Hong Kong

Language: English

Topic: Merger and Competition Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1970095202

FWCI: 15.43

Cites: 27

Cited by: 105

Related to: 10