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Can a Merger Take Place among Symmetric Firms?

Research output: Contribution to journalArticlepeer-review

Abstract

The literature on mergers and acquisitions shows that a merger among identical firms does not take place because it is not profitable. This study forms a theoretical framework for understanding mergers among identical firms in a pollution-intensive sector. When a merger occurs the market structure changes and so do optimal environmental policies. This flexibility in policy provides the incentive to merge even if there are no efficiency gains.

Original languageAmerican English
JournalStudies in Microeconomics
Volume1
DOIs
StatePublished - Dec 1 2013

Keywords

  • Polluting firms
  • emission tax
  • flexible policy
  • market structure
  • merger
  • symmetric firms

Disciplines

  • Economics

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