Abstract:
This paper tries to analyze the interrelationship between possibilities of conflict in cross
border mergers and acquisitions and firm and market characteristics in a two country
three firm model. We show that in general an increase in asymmetry across firms reduces
the possibility of conflict between jurisdictions over merger review decisions. We also
show that possibility of conflict increase with the increase in market asymmetries across
countries. We also discuss interaction of asymmetry in firm and market size with the
distribution of firms across countries and its effect on the possibilities of conflict.
