Identificador persistente para citar o vincular este elemento: http://hdl.handle.net/10553/74131
Título: Mergers under uncertainty: The effects of debt financing
Autores/as: Socorro Quevedo, María del Pilar 
Clasificación UNESCO: 530101 Política fiscal y deuda pública
Palabras clave: Conglomerate Firms
Horizontal Merger
Capital Structure
Oligopoly
Industry, et al.
Fecha de publicación: 2007
Publicación seriada: Manchester School 
Resumen: In this paper, we consider a Cournot oligopoly with demand uncertainty, fixed costs and constant marginal costs. The demand uncertainty makes some mergers that would be unprofitable in a certain environment profitable in this model. However, socially advantageous mergers may be still unprofitable for the colluding firms, so public intervention may be needed. One possibility consists in subsidizing such mergers. However, the combination of limited liability debt financing and an appropriate antitrust policy leads to higher social welfare than subsidies. The reason is that, given the limited liability effect, merging parties compete more aggressively, so the reduction in market quantity is mitigated.
URI: http://hdl.handle.net/10553/74131
ISSN: 1463-6786
DOI: 10.1111/j.1467-9957.2007.01031.x
Fuente: Manchester School [ISSN 1463-6786], v. 75 (5), p. 580-597, (Septiembre 2007)
Colección:Artículos
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