Horizontal mergers and divestment dynamics in a sunset industry
研究了需求下降行业中横向合并如何通过内部化业务窃取效应促进撤资，并以日本水泥行业为例，发现合并后企业更积极减少资本，且总福利改善。
Industries with declining demand tend to be riddled with chronic excess capital due to the presence of a business‐stealing effect and fixed costs. This article highlights the potential of mergers to internalize this business‐stealing effect and thereby promote divestment. Using the case of mergers in the Japanese cement industry, it examines whether such merger‐induced divestment improves total welfare based on a dynamic model of divestment. The findings suggest that merged firms indeed tended to reduce capital more actively and that, as a result of these mergers, total welfare improved despite a reduction in the consumer surplus.