Abstract
We present an agent-based model of endogenous merger formation in a market with turnover of market participants. We describe the dynamics of the model and identify the conditions under which market competition is sufficiently disrupted to prompt extended periods during which mergers are desirable. We also demonstrate how merger waves can be triggered by industry shocks and firm overconfidence.
| Original language | English |
|---|---|
| Pages (from-to) | 39-51 |
| Number of pages | 13 |
| Journal | Intelligent Systems in Accounting, Finance and Management |
| Volume | 20 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2013 |