On Merger and Acquisition and Protectionism We develop a dynamic model of merger assuming a monopolistic competitive market with heterogeneous rms. We show the existence of a non-trivial equilibrium in the merger market and the conditions under which mergers lower the industry aggregate price. Most importantly, we show as our main result that merger and acquisition activities are in a sense protectionary, nonetheless they can be welfare improving
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More about this item
Keywords
Mergers; acquisitions; trade; protection;All these keywords.
JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
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