Why parallel trade may raise producers' profits

Why Parallel Trade May Raise Producers' Profits

This paper shows that a manufacturer may benet from parallel trade. In addition to an intuitive condition about the e¤ect of demand shocks, this occurs when competitive retailers must order inventories before they know the realization of demand and for products whose sale value drops at the end of the demand period. For these types of products, letting retailers trade unsold inventories genera...

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Why mergers reduce profits and raise share prices : A theory of preemptive mergers

Why Mergers Reduce Profits and Raise Share Prices — A Theory of Preemptive Mergers* by Sven-Olof Fridolfsson and Johan Stennek We explain the empirical puzzle why mergers reduce profits and raise share prices. If being an “insider” is better than being an “outsider,” firms may merge to preempt their partner merging with a rival. The stock-value of the insiders is increased, since the risk of be...

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FS IV 01 – 26 Why Mergers Reduce Profits and Raise Share Prices — A Theory of Preemptive Mergers

Why Mergers Reduce Profits and Raise Share Prices — A Theory of Preemptive Mergers* by Sven-Olof Fridolfsson and Johan Stennek We explain the empirical puzzle why mergers reduce profits and raise share prices. If being an “insider” is better than being an “outsider,” firms may merge to preempt their partner merging with a rival. The stock-value of the insiders is increased, since the risk of be...

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Medium-chain triacylglycerols may not raise cholesterol.

Although medium-chain triacylglycerols (MCTs; 8:0 and 10:0) historically have been considered nonlipemic for most individuals, the report by Asakura et al (1) suggests that MCTs may be hypercholesterolemic in subjects with hypertriglyceridemia. Although the authors emphasized the hypercholesterolemia induced when MCTs progressively replaced corn oil in the carefully manipulated diet of these su...

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Medium-chain triacylglycerols may not raise cholesterol

Although medium-chain triacylglycerols (MCTs; 8:0 and 10:0) historically have been considered nonlipemic for most individuals, the report by Asakura et al (1) suggests that MCTs may be hypercholesterolemic in subjects with hypertriglyceridemia. Although the authors emphasized the hypercholesterolemia induced when MCTs progressively replaced corn oil in the carefully manipulated diet of these su...

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Why parallel trade may raise producers' profits

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