Either voluntarily as mergers and selloffs or involuntarily through hostile takeovers, a massive wave of corporate restructuring took place in the United States in the 1980s (Hoskisson & Turk, 199(3). Often consisting of business liquidations in multidivisional companies, it involved major changes in corporate assets along with major changes in corporate strategy. Restructuring, sometimes invol...

We experimentally study the effects of introducing a forward market and of increasing the number of competitors in a quantity-setting market under strictly convex production costs. Our key interest is to better understand which of these two remedies is more effective at enhancing competition. Allaz and Vila (1993) theorized that forward markets can have a pro-competitive effect under linear pro...

A number of the worlds’ major airports have a high proportion of their capacity utilised by a single airline, or alliance of airlines. At major US airports, for example, it is common for the leading carrier to account for threequarters or more of the flights; at European airports the proportions are generally smaller but often exceed 50 per cent (see Annex 1). This has lead to concerns that suc...

Purpose – To examine the impact of the merger of the two largest US department store companies on the competitive state of the sector and specifically the anti-trust implications of the consolidation. Approach – Based on semi-structured interviews with leading US department store executives as well as an ongoing close dialogue with US retail analysts. Findings – The consolidation raises conside...

Almtract Societies today are undergoing drastic social, informational, and technological changes. The revolutionary advances in electronic technologies and globalization are transforming the nature, reach, speed, and loci of human influence. These rapidly evolving realities place increasing demands on the exercise of personal and collective agency to shape personal destinies and the national li...

Rational expectations dictate that firms respond to shifts in the hospital payment system as a result of health sector reform. To determine the impact of system reform on levels of hospital diversification and operating ratio for 88 teaching hospitals and 88 community hospitals during the period 2005 – 2010. The 44 teaching hospitals are matched with 44 other teaching hospitals experiencing the...

Management incentive contracts are postulated to alleviate the principal-agent conflict in the widely-held firms. This paper studies the effect of changes in CEO pay-performance sensitivity (delta), stock option convexity (vega) and performance-contingent pay on changes in firm excess value for the US public companies that undergo non-cash divestitures (spin-offs) during the 1992-2006 period. F...

The European Commission (EC) declared in July 2001 the merger between General Electric (GE) and Honeywell “incompatible with the common market”. The EC argument supposed that dominant position created or strengthened by horizontal overlaps and vertical and conglomerate integration, as a result of which effective competition would be significantly impeded, would end in the monopolization of some...

In the last two decades, many firms in the U.S. forest products industry have either divested their timberlands to timber investment management organizations (TIMOs) and conservation organizations or converted their corporate structures from C corporations to real estate investment trusts (REITs). All landowners sold smaller timberland tracts for nonforestry uses. Reduced timber supplies from c...

This paper explores the relationship between globalization, competition, competition policy and competitiveness. It is important to note that although these notions are related, they are conceptually different. This paper contributes by providing a theoretical framework for the main issues which arise in the modern discussion of competition and competition policies in economic development. It a...