Partial acquisition; Public firm; Salop circular market; Control threshold
摘要：
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.
