Cross-border mergers in a mixed oligopoly
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 185-199.
- Bernardo Bortolotti & Marcella Fantini & Domenico Siniscalco, 2001. "Privatisation Around the World: New Evidence from Panel Data," CESifo Working Paper Series 600, CESifo Group Munich.
- Farrell, J. & Shapiro, C., 1988.
"Horizontal Mergers: An Equilibrium Analysis,"
17, Princeton, Woodrow Wilson School - Discussion Paper.
- Joseph Farrell and Carl Shapiro., 1988. "Horizontal Mergers: An Equilibrium Analysis," Economics Working Papers 8880, University of California at Berkeley.
- Farrell, Joseph & Shapiro, Carl, 1988. "Horizontal Mergers: An Equilibrium Analysis," Department of Economics, Working Paper Series qt0tp305nx, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Davidson, Carl & Mukherjee, Arijit, 2007. "Horizontal mergers with free entry," International Journal of Industrial Organization, Elsevier, vol. 25(1), pages 157-172, February.
- Matsumura, Toshihiro, 1998. "Partial privatization in mixed duopoly," Journal of Public Economics, Elsevier, vol. 70(3), pages 473-483, December.
- Perry, Martin K & Porter, Robert H, 1985. "Oligopoly and the Incentive for Horizontal Merger," American Economic Review, American Economic Association, vol. 75(1), pages 219-227, March.
- Kenneth Fjell & Debashis Pal, 1996. "A Mixed Oligopoly in the Presence of Foreign Private Firms," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 737-743, August.
- Javier M. López Cuñat & Miguel González-Maestre, 1999.
"- Delegation And Mergers In Oligopoly,"
Working Papers. Serie AD
1999-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Garzón San Felipe, María Begoña & Bárcena Ruiz, Juan Carlos, 2001.
"International Trade and Strategic Privatization,"
2001-07, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
- Artz, Benjamin & Heywood, John S. & McGinty, Matthew, 2009. "The merger paradox in a mixed oligopoly," Research in Economics, Elsevier, vol. 63(1), pages 1-10, March.
- Sensarma, Rudra, 2006. "Are foreign banks always the best? Comparison of state-owned, private and foreign banks in India," Economic Modelling, Elsevier, vol. 23(4), pages 717-735, July.
- Keith Head & John Ries, 1997. "International Mergers and Welfare under Decentralized Competition Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1104-1123, November.
- Sue Mialon, 2005.
"Efficient Horizontal Mergers: The Effects of Internal Capital Reallocation and Organizational Form,"
0522, Department of Economics, Emory University (Atlanta).
- Mialon, Sue H., 2008. "Efficient horizontal mergers: The effects of internal capital reallocation and organizational form," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 861-877, July.
- Denis, CLAUDE & Jean, HINDRIKS, 2005.
"Strategic Privatization and Regulation Policy in Mixed Markets,"
Discussion Papers (ECON - Département des Sciences Economiques)
2005016, Université catholique de Louvain, Département des Sciences Economiques.
- J Hindriks & D Claude, 2006. "Strategic Privatization and Regulation Policy in Mixed Markets," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(1), pages 7-26, February.
- CLAUDE, Denis & HINDRIKS, Jean, 2005. "Strategic privatization and regulation policy in mixed markets," CORE Discussion Papers 2005015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Neary, J. Peter, 2004.
"Cross-Border Mergers as Instruments of Comparative Advantage,"
Center for European, Governance and Economic Development Research Discussion Papers
34, University of Goettingen, Department of Economics.
- J. Peter Neary, 2007. "Cross-Border Mergers as Instruments of Comparative Advantage," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1229-1257.
- J. Peter Neary, 2004. "Cross-border mergers as instruments of comparative advantage," Working Papers 200404, School of Economics, University College Dublin.
- Neary, J Peter, 2004. "Cross-Border Mergers as Instruments of Comparative Advantage," CEPR Discussion Papers 4325, C.E.P.R. Discussion Papers.
- Bhaumik, Sumon Kumar & Dimova, Ralitza, 2004.
"How important is ownership in a market with level playing field?: The Indian banking sector revisited,"
Journal of Comparative Economics,
Elsevier, vol. 32(1), pages 165-180, March.
- Sumon Kumar Bhaumik & Ralitza Dimova, 2003. "How Important is Ownership in a Market with Level Playing Field? The Indian Banking Sector Revisited," William Davidson Institute Working Papers Series 2003-569, William Davidson Institute at the University of Michigan.
- Hans-Martin Zademach & AndrÃ©s RodrÃguez-Pose, 2008.
"Cross-Border M&As and the Changing Economic Geography of Europe,"
European Planning Studies,
Taylor & Francis Journals, vol. 17(5), pages 765-789, January.
- Andrés Rodríguez-Pose & Hans-Martin Zademach, 2007. "Cross-border M&As and the changing economic geography of Europe," Working Papers 2007-19, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Nocke, Volker & Yeaple, Stephen, 2007. "Cross-border mergers and acquisitions vs. greenfield foreign direct investment: The role of firm heterogeneity," Journal of International Economics, Elsevier, vol. 72(2), pages 336-365, July.
- Horn, Henrik & Persson, Lars, 1999.
"The Equilibrium Ownership of an International Oligopoly,"
CEPR Discussion Papers
2302, C.E.P.R. Discussion Papers.
- Horn, Henrik & Persson, Lars, 2001. "The equilibrium ownership of an international oligopoly," Journal of International Economics, Elsevier, vol. 53(2), pages 307-333, April.
- Horn, Henrik & Persson, Lars, 1999. "The Equilibrium Ownership of an International Oligopoly," Working Paper Series 515, Research Institute of Industrial Economics.
- Yasuhiko Nakamura & Tomohiro Inoue, 2007. "Mixed Oligopoly and Productivity-Improving Mergers," Economics Bulletin, AccessEcon, vol. 12(20), pages 1-9.
- Rothschild, R. & Heywood, John S. & Monaco, Kristen, 2000. "Spatial price discrimination and the merger paradox," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 491-506, September.
- de Fraja, Giovanni & Delbono, Flavio, 1989. "Alternative Strategies of a Public Enterprise in Oligopoly," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 302-311, April.
- John S. Heywood & Matthew McGinty, 2008. "Leading and Merging: Convex Costs, Stackelberg, and the Merger Paradox," Southern Economic Journal, Southern Economic Association, vol. 74(3), pages 879-893, January.
- Daughety, Andrew F, 1990. "Beneficial Concentration," American Economic Review, American Economic Association, vol. 80(5), pages 1231-1237, December.
- Ziss, Steffen, 2001. "Horizontal mergers and delegation," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 471-492, March.
- William C. Merrill & Norman Schneider, 1966. "Government Firms in Oligopoly Industries: A Short-Run Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 80(3), pages 400-412.
- Brueckner, Jan K. & Pels, Eric, 2005.
"European airline mergers, alliance consolidation, and consumer welfare,"
Journal of Air Transport Management,
Elsevier, vol. 11(1), pages 27-41.
- Jan K. Brueckner & Eric Pels, 2004. "European Airline Mergers, Alliance Consolidation, and Consumer Welfare," CESifo Working Paper Series 1154, CESifo Group Munich.
- Bortolotti, Bernardo & Fantini, Marcella & Siniscalco, Domenico, 2004. "Privatisation around the world: evidence from panel data," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 305-332, January.
- Bjorvatn, Kjetil, 2004. "Economic integration and the profitability of cross-border mergers and acquisitions," European Economic Review, Elsevier, vol. 48(6), pages 1211-1226, December.
- Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2001. "Impact of Ownership and Competition on the Productivity of Chinese Enterprises," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 327-346, June.
- Anthony Creane & Carl Davidson, 2004. "Multidivisional firms, internal competition, and the merger paradox," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 951-977, November.
- Chunlai Chen & Christopher Findlay, 2003. "A Review of Cross-border Mergers and Acquisitions in APEC," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 17(2), pages 14-38, November.
- Nam-Hoon Kang & Sara Johansson, 2000. "Cross-Border Mergers and Acquisitions: Their Role in Industrial Globalisation," OECD Science, Technology and Industry Working Papers 2000/1, OECD Publishing.
- repec:ebl:ecbull:v:12:y:2007:i:20:p:1-9 is not listed on IDEAS
- John S. Heywood & Matthew Mcginty, 2007. "Convex Costs And The Merger Paradox Revisited," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 342-349, 04.
- Barros, Fatima & Modesto, Leonor, 1999. "Portuguese banking sector: a mixed oligopoly?," International Journal of Industrial Organization, Elsevier, vol. 17(6), pages 869-886, August.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:28:y:2011:i:1-2:p:382-389. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.