COMPETITION AND CASCADES IN MARKETS: AN AGENT‐BASED MODEL OF ENDOGENOUS MERGERS |
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| Authors: | Camillia Zedan Antonella Ianni Seth Bullock |
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| Affiliation: | 1. Institute for Complex Systems Simulation, University of Southampton, , Southampton, UK;2. School of Social Sciences, University of Southampton, , Southampton, UK |
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| 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. Copyright © 2012 John Wiley & Sons, Ltd. |
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| Keywords: | Cournot competition agent‐based simulation endogenous mergers emergent behaviour merger waves |
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