Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
If capital lowers marginal cost and a firm with more capital gets a bigger share of the surplus in merger bargaining, then the equilibrium price with a merger may be lower than without a merger. If entry is restricted, the level of industry profits minus investment costs may be higher if mergers are prohibited. Thus, a regulatory climate that permits mergers may harm firms and benefit consumers. Copyright 1992 by Blackwell Publishing Ltd.