Mergers, managerial incentives, and efficiencies

Research, Preprint English OPEN
Jovanovic, Dragan;
(2014)
  • Publisher: Düsseldorf Institute for Competition Economics (DICE) Düsseldorf
  • Subject: D21 | D86 | Merger Control | L41 | Managerial Incentives | Synergies | L22 | Productive Efficiency Gains | Efficiency Defense | Managerial Incentives,Horizontal Mergers,Merger Control,Productive Efficiency Gains,Synergies,Efficiency Defense | Horizontal Mergers
    • jel: jel:D21 | jel:D86 | jel:L22 | jel:L41
      ddc: ddc:330

We analyze the effects of synergies from horizontal mergers in a Cournot oligopoly where principals provide their agents with incentives to cut marginal costs prior to choosing output. We stress that synergies come at a cost which possibly leads to a countervailing ince... View more
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