International mergers: Incentives and welfare

• 成果类型: Article
• 署名作者: Qiu, LD; Zhou, W
• 署名单位: Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2004.12.005
• 发表日期: 2006
• 页码: 38-58
• 关键词: international mergers; cross-border mergers; merger incentives; welfare; information sharing; output coordination

摘要

Information asymmetry creates incentives for firms from different countries to merge. To demonstrate this point, we develop a model of international oligopolistic competition under demand uncertainty and asymmetric information. We show that when domestic firms but not foreign firms are completely informed of local market demands, information sharing enhances the profitability of a merger between a domestic firm and a foreign firm. We also examine how such a merger affects the non-merging firms' profits, consumer surplus and social welfare. (c) 2005 Elsevier B.V. All rights reserved.