Mergers Across Borders Boost Profits, Reshape Global Markets
The article explores if merging companies in different countries can make more money than those in the same country when competing. It looks at how two companies together, rather than alone, might succeed in certain markets. The key discovery is that it's not always profitable for companies from the same country to merge, but it can be very beneficial for companies in different countries to join forces, especially when the businesses are basing decisions on Cournot competition. This research emphasizes that international trade plays a significant role in shaping the incentives for companies to merge, suggesting that working together across borders can sometimes lead to more success in the business world.