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Competition and cascades in the financial markets: An agent-based model of endogeneous mergers

Research output: Contribution to journalArticle

Original languageEnglish
Pages (from-to)39-51
Number of pages13
JournalIntelligent Systems in Accounting, Finance and Management
Volume20
Issue number1
DOIs
DatePublished - 2013

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.

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