• Medientyp: E-Book; Bericht
  • Titel: Mergers, managerial incentives, and efficiencies
  • Beteiligte: Jovanovic, Dragan [VerfasserIn]
  • Erschienen: Düsseldorf: Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), 2014
  • Sprache: Englisch
  • ISBN: 978-3-86304-087-1
  • Schlagwörter: Productive Efficiency Gains ; L41 ; Managerial Incentives ; L22 ; D21 ; Efficiency Defense ; Merger Control ; Horizontal Mergers ; D86 ; Synergies
  • Entstehung:
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  • Beschreibung: 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 incentive effect: The merged firm's principal may be induced to stifle managerial incentives in order to reduce her agency costs. Whenever this incentive effect dominates the well-known direct synergy effect, synergies actually reduce consumer surplus which opposes the use of an efficiency defense in merger control.
  • Zugangsstatus: Freier Zugang