Can a Merger Take Place among Symmetric Firms?
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.
Fikru, M. G., & Lahiri, S. (2013). Can a Merger Take Place among Symmetric Firms?. Studies in Microeconomics, 1(2), pp. 155-162. SAGE Publications Ltd.
The definitive version is available at https://doi.org/10.1177/2321022213501255
Keywords and Phrases
emission tax; flexible policy; market structure; merger; Polluting firms; symmetric firms
International Standard Serial Number (ISSN)
Article - Journal
© 2013 SAGE Publications Ltd, All rights reserved.
01 Dec 2013