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- Takeover Waves

Author

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  • Ramón Faulí-Oller

    (Universidad de Alicante)

Abstract

Horizontal takeovers often occur in waves. A sequence of takeovers is obtained in a Cournotsetting with cost asymmetries. They are motivated by two different reasons: (i) A low realizationof demand increases the profitability of takeovers. (ii) Takeovers raise the profitability of futuretakeovers. A possible explanantion of merger races is also obtained by showing that firms buyingin the first place pay a lower price for their targets.

Suggested Citation

  • Ramón Faulí-Oller, 1999. "- Takeover Waves," Working Papers. Serie AD 1999-30, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1999-30
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1999-30.pdf
    File Function: Fisrt version / Primera version, 1999
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

    Takeovers; Antitrust; Demand.;
    All these keywords.

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