Anmerkungen:
In: Economics Letters, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 18, 2017 erstellt
Beschreibung:
Private equity firms (PE firms) have become common owners of established firms in concentrated markets. We show that the threat of a PE acquisition can trigger incumbent mergers in an otherwise merger-stable industry. This can help antitrust authorities maximize consumer surplus because previously privately unprofitable — but consumer surplus-enhancing — mergers now take place. We thus predict that merger waves among incumbents should follow the development of a local PE industry