Competition and cascades in the financial markets: an agent-based model of endogenous mergers
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. W...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
2013.
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| Subjects: | |
| Online Access: | Get fulltext |
| Summary: | 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. |
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