Profiting from induced changes in competitors' market values: the case of entry and entry deterrence
Article Abstract:
A research effort used entry and entry deterrence to show that the profits from the secondary financial impacts of business decisions can significantly change economic model predictions. J. Hirshleifer, in his 1971 analysis of trading profits that result from technological innovations, concluded that the lack of innovation may be offset by allowing innovators to raise their appropriation of the social welfare increase. His idea should extend beyond the inventors taking trading profits from the price adjustments resulting from their innovations.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1995
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The limited role of market power in generating great fortunes in Great Britain, the United States, and Australia
Article Abstract:
Market share appears to be behind a mere one-third of the greatest contemporary riches in the UK, US and Australia. This is consistent with the earlier results obtained by W.S. Comanor and R.H. Smiley in 1975, and R. Lankford and J.F. Stewart in 1980. More than two-thirds of the largest fortunes in these three countries originated in competitive industries, which may be surprising. Risk and uncertainty, infra-marginal rents and disequilibrium may cause great fortunes to arise from competitive industries.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1995
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"Breach of trust" in takeovers and the optimal corporate charter
Article Abstract:
A study uses an incomplete contracts framework to investigate the effects of corporate takeovers, takeover defenses and golden parachutes on the value of the firms being targeted. The analysis considers a raider capable of improving production efficiencies and the appropriate rents of company stakeholders. The corporate charter of a company may be designed to reduce the underinvestment effect without giving up takeovers that have profit potentials.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1995
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