کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
970407 1479535 2013 4 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Merger wave in a small world: Two views
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Merger wave in a small world: Two views
چکیده انگلیسی

I attempt a more balanced assessment of mergers in terms of systemic risk versus other effects. First, using the simplest network model, I illustrate how mergers can increase systemic risk by reducing the degree of separation among firms. Then, recasting the firms in a simple economic model that features consumers explicitly, I show how a merger wave – a contagious urge to merge – can occur and what benefit it may bring to consumers. Together, these two models suggest that there is a tradeoff to consider: While a merger wave may result in higher systemic risk, it may also bring about higher consumer welfare.


► Firms exist in more than one world.
► Mergers can make one world smaller and another bigger, one world better off and another worse off.
► In the financial world, mergers can bring firms closer to each other, thereby making that world smaller.
► In the economic world, mergers drive firms farther apart, thereby making that world bigger.
► Thus, as firms merge, financial panics and bubbles become more likely, and yet products become better aligned with consumer preferences.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: The Journal of Socio-Economics - Volume 43, April 2013, Pages 68–71
نویسندگان
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