Can a Merger Take Place Among Symmetric Firms?
9 Pages Posted: 8 Mar 2011
Date Written: March 8, 2011
The literature on mergers and acquisitions shows that a merger among identical firms is not profitable. This study develops a theoretical framework for understanding mergers among identical firms in a pollution-intensive sector. We show that if environmental policies adjust with a change in market structure because of a merger, such a merger can be profitable.
Keywords: flexible policy, emission tax, merger, symmetric firm
JEL Classification: D43, G34, L13, H21
Suggested Citation: Suggested Citation