Horizontal mergers and divestment dynamics in a sunset industry

Masato Nishiwaki

研究成果: Article査読

1 被引用数 (Scopus)

抄録

Industries with declining demand tend to be riddled with chronic excess capital due to the presence of a business-stealing effect and fixed costs. This article highlights the potential of mergers to internalize this business-stealing effect and thereby promote divestment. Using the case of mergers in the Japanese cement industry, it examines whether such merger-induced divestment improves total welfare based on a dynamic model of divestment. The findings suggest that merged firms indeed tended to reduce capital more actively and that, as a result of these mergers, total welfare improved despite a reduction in the consumer surplus.

本文言語English
ページ(範囲)961-997
ページ数37
ジャーナルRAND Journal of Economics
47
4
DOI
出版ステータスPublished - 2016 12 1

ASJC Scopus subject areas

  • 経済学、計量経済学

フィンガープリント

「Horizontal mergers and divestment dynamics in a sunset industry」の研究トピックを掘り下げます。これらがまとまってユニークなフィンガープリントを構成します。

引用スタイル