Title : Partial acquisition with an excluded public rival

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Affiliation of Author(s):山东大学经济学院

Title of Paper:Partial acquisition with an excluded public rival

Journal:International Review of Economics and Finance

Key Words:Partial acquisition; Public firm; Salop circular market; Control threshold

Abstract:This paper examines partial acquisition in the face of an outside public firm. We show that when the acquiring firm is domestic, partial acquisition takes place for any institutional threshold for pricing control. Yet, when the acquiring firm is foreign, partial acquisition can be forestalled by a sufficiently high threshold requirement. This threshold can increase domestic welfare and global welfare by stopping an inefficient partial acquisition. Moreover, this mixed market structure can generate greater global welfare than one with an outside private firm.

Indexed by:Journal paper

Document Code:https://doi.org/10.1016/j.iref.2018.08.017

Discipline:Economics

First-Level Discipline:Applied Economics

Document Type:J

Volume:59

Page Number:164-173

Number of Words:6000

ISSN No.:1059-0560

Translation or Not:no

Date of Publication:2019-01-01

Included Journals:SSCI